My study into buying contract or sim-only iPhone [UK]. Savings to be had&#3

[Axel]

Well here goes, I spent the last half an hour doing this so let me know what you think. It's not perfect but I think it all adds up!

Assumptions

You choose the iPhone valued at £600. Typically, this is the 32Gb version. This price point is also generally carried over to the next product refresh.

You sell your iPhone at end of use. Based on ebay research a good condition 1 year old 32gb iPhone will depreciate in value by approx 40% and a 2 year old will depreciate by approx 70%. These values are very conservative and the likelihood of receiving MORE for said iPhone's is actually greater.

Contracts Used

O2 24 Month (fixed). 300 minutes. Unlimited Texts. 500mb Data. £32pcm

GiffGaff Sim Only (rolling). 400 minutes. Unlimited Texts. Unlimited Data. £15pcm

NB: If you haven't heard of GiffGaff, they actually run on the O2 network and offer better sim only prices than O2. GiffGaff only offer 1 month rolling contracts.

The Scenarios

Each of the following assume continued commitment for 24 months, followed by the sale of each phone at the end of use.

Scenario A New iPhone every 2 years on O2 Contract

Scenario B New iPhone every 2 years on GiffGaff

Scenario C New iPhone every 1 year on GiffGaff

Summary

Scenario A The cost over 24 months is £868 and you get the use of 1 iPhone in the process.

Scenario B The cost over 24 months is £760 and you get the use of 1 iPhone in the process.

Scenario C The cost over 24 months is £860 and you get the use of 2 iPhones in the process.

Sources:

http://www.o2.co.uk

http://www.giffgaff.com

http://www.ebay.co.uk

[Rudy]

Lucky you....you live in a country where you can pick a descent carrier....I wish :/

[Vice]

I did the exact same thing but for the network Three. I'll share my data as I think that would be interesting to people also. This is all for the iPhone 16GB model but the price brackets increment identically with the 32GB iPhone just with about £100 added to every price. All costs are over a 24 month period.

.

Key:

Price per Month / Price over 24 Months + Upfront Phone Cost = Total price over 24 months

.

30 Day rolling contract, Buying phone as Pay as you Go and putting the £10 a month sim in:

£10 a month / £240 + £499 = £739

^ the reason I mention this is because for £10 a month you get 150 Minutes + 3000 Texts and 500MB data. The contract only lasts 30 days and renews automatically but you can cancel it at any time. Purchasing the phone Pay as You Go from Three enables you to get the phone £30 cheaper than buying the phone Sim Free and you can then put the £10 a month sim card in it. This deal is identical to the £30 a month deal listed below.

24 Month contracts:

£25 a month / £600 + £229 = £829

£30 a month / £720 + £99 = £819

£35 a month / £840 + £29 = £869

£35 a month / £840 + £69 = £909

£40 a month / £960 + £19 = £979

£43 a month / £1032 + £0 = £1032

[LittleNeutrino Veteran]

i know I have found in the US that the upfront cost is more to do SIM only however, over the course of the 2 years you would be on contract its almost always cheaper.

[Rudy]

My biggest problem is that contract or not the monthly price at the end in Canada for voice + data is pretty much the same

[Stonkwell Bogtrotter]

.

30 Day rolling contract, Buying phone as Pay as you Go and putting the £10 a month sim in:

£10 a month / £240 + £499 = £739

^ the reason I mention this is because for £10 a month you get 150 Minutes + 3000 Texts and 500MB data. The contract only lasts 30 days and renews automatically but you can cancel it at any time. Purchasing the phone Pay as You Go from Three enables you to get the phone £30 cheaper than buying the phone Sim Free and you can then put the £10 a month sim card in it. This deal is identical to the £30 a month deal listed below.

Sim 300 [on Three] gives you the following for £10 per month [12 month contract].

300 minutes

3000 texts

1Gb Internet

And ask them nicely and you'll get 2000 3 to 3 minutes too ;)

Just in case If anyone else is interested. (Y)

[Kerm]

I went with a Galaxy S2 (£400) and I'm on the GiffGaff £10/month 250mins/unlimetered data + texts + giffgaff to giffgaff voice + video calls. Very happy.