If you're ready to take a punt and are willing to get a phone that looks like an iPhone 4 but runs on Android, then try the T-Mobile Vivacity which is listed at £109.99 on the website of the mobile phone operator.
However, if you buy the handset through cashback website, Topcashback, you get a staggering £40.40 back if the cashback is tracked. Bringing down the price of the deal to £70, a price that includes a £10 top up - that compares with £319 for the iPhone 3GS.
You also get six months free internet worth £20 on T-Mobile (unlimited web browsing and 500MB data allowance per month) and £20 free apps as part of T-Mobile's Appy Christmas campaign.
The Vivacity is an upgraded version of the ZTE Blade S and is available on the Orange network as the San Francisco II; compared to the latter, the Vivacity has only a few bundled apps and runs without a fancy user interface.
It boasts a 800MHz Qualcomm MSM7227 system on chip, 512MB RAM, a five megapixel camera, a 3.5-inch, 800x480 pixel capacitive touchscreen display, Android 2.3 Gingerbread, Bluetooth, GPS, a 2GB memory card and Wi-Fi.
Assuming that the cashback tracks properly, this could be the cheapest way to get a WVGA touchscreen display with 512MB RAM and enough oomph to hope for an Ice Cream Sandwich update.