Some reasons many of my Indian friends (from upper-middle class to pretty rich people) mentioned:
1. Can't use it as USB.
2. Can't use Bluetooth to transfer files.
3. It's too costly, I can buy two laptops for price of one iPhone.
4. Too many software issues.
5. iPhone 4 is better than iPhone 4S.
6. Android is best, Apple copies everything from Samsung.
7. Google and Samsung are doing a great and virtuous thing by providing all the features in iPhone at very low cost, even in $100 model I get all features.
8. BlackBerry was high-class, a few still believe it and it's available now around $150.
9. Pre-paid Market and lots of low cost models available.
10. iPhone's are too delicate.
11. All iPhone's look same.
12. The cellular internet coverage apart from cities you can count with one hand is still stuck at 2G and the costs are very high. Just for small comparison a monthly mobile bill (1000 sms, 200 MB 2G data, 1000 call mins per month free scheme) may be less than $ 10 and for 3G or BlackBerry services you may have to pay more than $ 50 per month.
I can go on, but in general I found apart from very few people (considering the Indian Population size) many are less aware and have lots of misconceptions about Apple.
Very funny Samsung copies the crap out if iphones. It is always apple which sets the industry standard such as right now they want to eliminate the optical drive. And the industry copies these innovations in the most imperfect manner. I live in india and you dont get 2 laptops dor the price of an iphone.
Every1 in my family has a mac and they love it. It is totally worth the experience.