Now, I am giving second thought to iPhone as it is available with EMI option as well. Saw this info on Airtel site (http://www.airtel.in/iphone3g)

Rajiv

iphone is best phone if i do compare to other phones,iphone has a lot of features,it seems to be a good multimedia device, as it has great features and the user interface, and very easy to use for voice, sms and internet. and
iphone has a great internet device to user experience for browsing, default youtube client on the home screen, apps store.and also advantage to music experience with iconic iPod.

So, as a whole if somebody who is targeting for this budget, it does not seem high when you buy a product from Apple.

Thanks
Rajesh