Aliasalpha: Damn, there's a phrase I never thought I'd see!
Surprising isn't it. My iPhone 4 cost around 42000 yen (sorry can't find the paperwork for the exact price) paid in monthly installments of about 2000 yen. But the plan I use also grants a monthly discount equivalent to the monthly installment. So ultimately, I'll only pay 2000 yen (first month isn't discounted) for the phone.
The only stipulation for that discount is that you don't change the phone model until it's paid off. Otherwise you forfeit the discount and pay the rest in a lump sum. In comparison, the non-smart Japanese brand phone my wife wants costs 118,000 yen. Japanese brand smart phones are around the same price as that.
I suppose it's possible that the Android is either cheaper or of a comparable price as the iPhone but there's no local provider that offers that one here.