In India however, neither company will offer a subsidy.

However, the non-3G Apple iPhone -- which was launched by the company earlier -- is available in the Indian grey market at around Rs 20,000, down from Rs 24,000 a few months ago.

Image: David Yoo holds up his iPhone as he screams leaving the Apple store on July 11, 2008 in New York. Yoo was the first customer to exit the store with the new phone. | Photograph: Don Emmert/AFP/Getty Images.