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3g phone

Finally, Vodafone announces price of iPhone 3G Phone in India. From the webpage:

We are delighted to announce that the iPhone 3G will be available in India from August 22, 2008 It will be available in 8GB & 16GB models, priced at Rs 31,000 and Rs 36,100 respectively.

A quick comparison between same versions of iPhone sold in the USA and India show a big difference in the respective price tags. You'll have to pay $199 (8 GB) and $299 (16 GB) if you live in the States, but a whopping $712 and $829 if you happen to buy it in India. You will have to pay extra for data and voice plans.

Final cost = 36000 (16GB phone) + 12000 ( rent) + Voice + Data charges + Taxes (i.e. $1,104.96)

How can such price difference be explained? I understand there are some added costs but still it is way too much overpriced. If I compare Dell prices I see marginal differences. No wonder I don't won Apple Laptop or iPhone 3G.