This looks like the cheapest Android Phone that I've come across. The Samsung Galaxy 5 I5503 going for RM699 (US$227) sold by PDA Expert Mobility in Digital Mall sec 14 Petaling Jaya. Even at this price it got GPS and WIFI.
No chance to look at the android phone as I was just passing through and just grabbing their price list to see what is their latest PDA phone offering of Windows Mobile, Blackberry, Android phone, and Java phones.
Ok, found some specs and it goes something like:
Samsung Galaxy 5(I5503) will come packed with a standard 2.8 inch QVGA touch sensitive display, a 2MP camera, Samsung’s unique Touch Wiz UI 3.0, 3G connectivity , Wi-Fi, GPS, a 600MHz CPU , a standard 3.5mm audio output jack, and an expandable MicroSD card support.
Here's a nice little picture of it.