This is not a review but a general piece of information you should have before buying the iPhone. The iPhones which are being brought in India by what-so-ever means work absolutely fine initially. You will find the contacts, GPRS, music, etc everything working absolutely fine across all networks in Delhi(as for my knowledge); The only problem is and is definitely going to arise is that the first time you face a problem in the phone or it generally slows down or hangs and all - ideally you would connect it to your PC and go to the Apple website to download the latest firmware. THIS is where money becomes dust and the iPhone will become an’iBrick’.
Conclusion: You can use the phone as of now but eventually you WILL have to update or upgrade the software sometime. Once connected to the Internet, Apple’s server will note that you are sitting in India with an unauthorised piece and wallah! you behold a shiny brick in your hand. Also, in the USA, the 4gb model is easily available at$300 odd(sim free) which makes it appro. 12k INR whereas the hideous Grey market merchants here are selling the iPhone for 35k – 40k INR. Further, Apple has discontinued the 4gb model in US as of now and is only supplying with the 8gb model priced at$400 odd yet again SIM free.