There is greed and then there is foolishness. While it is accepted that the Indians do not have a very well defined method of long term contracts, the high price of the phone suggests that Vodaphone and Apple want to extract the full price in a single go and then make more profits on the "contact" if any.

I am sure Apple will not be able to sell a single phone in India. Quiet frankly what is a iPhone 3G without 3G and and iTunes store and real "Maps". There are not enough Wifi spots to use either. In my travels to India I have found that bare 5% have broadband (256 kbps) at home and Wifi routers are thing of the rich. Not many own a laptop to justify the need of a Wifi router.

Apple could have changed a thing or two there by keeping the price same as in the rest of the world. Acceptance of iPhone in large quantitates would would start a new business like wifi routers being sold etc. A whole new ecology.

To me it all looks like the rich brats and phat wives of the India businessmen will buy the iPhone at that exorbitant price.

BTW did you know not many in India can afford a computer worth more than 15000 Indian Rupees ($300) and many in India earn less than 20% of 31000 in a month.

I bet the iPhone would be the biggest attraction for thieves in India.

Travel warning: iPhone users traveling to India may get mugged if displaying or using the phone outside their hotel room.

Your rant is completely misguided since Apple does not set the retail price for the iPhone. I recognize that the price of the phone beyond the means of most Indian but Apple simply sells to the carriers at the wholesale price adjusted for import duties, exchange rates and operational expenses. The carriers and/or resellers can choose to subsidize the retail price of the phone (or not). Lowering the wholesale price for a specific market could potentially encourage gray-market sales which the carriers oppose. Talk to Vodaphone about the retail price.