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17 Jun 2010
O2 has announced prices for the iPhone 4, but there has been some confusion over the cheapest monthly tariff.
The 16GB iPhone 4 will cost £209 on a £30 a month 18-month contract, but £279 on a £25 per month 24-month contract. This means that an 18-month contract on the lowest tariff works out at £749, while a 24-month contract costs £879.
Potential customers have turned to Twitter in their droves, convinced that O2 has made an error. However, the operator has replied to the tweets stating that the details are accurate.
An O2 spokesman confirmed to V3.co.uk that prices are correct, and that the operator offers a range of tariffs and people should pick the one that suits them best.
Handset prices for 18- and 24-month contracts are the same for the remaining five tariffs, which start at £30 per month and go up to £65.
Only the 16GB device is free when customers commit to at least £60 per month. A 32GB handset will still cost £29 even on the most expensive £65 per month tariff.
It does seem strange that the difference in handset prices between 18 and 24 month contracts applies only to the lowest tariff. To the sceptic, this could look like a ploy by O2 to dissuade customers from taking the cheapest tariffs.
Orange released pricing details for the iPhone 4 yesterday.
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Do you agree?
Re:Buy from apple then get a contract. its Cheaper in the long run
The contracts from O2 etc. are for 18 months not the 12. So your deal is £100 cheaper, but you missed out on an extra 6 months for just £16.66 a month! Also parax is absolutely right the monthly cost is cheaper for 24 month contracts. O2 take £5 off the cost of 24 month contracts compared to 18 month contracts. This £5 is porportionately a lot more on cheap contracts and so to balance this out the one-off charge is higher on 24 month contracts. Otherwise the 24 month deal would be too good.
Posted by: James 25 Jun 2010
Couldn't agree more..
The 02 iPhone prices are strange, they don't make too much sense and are trying to tempt us into having an iPhone 4 for two years, i wrote about this on my blog yesterday, i did a breakdown in excel of the main tariffs, see what you think http://www.nickmetcalf.co.uk/2010/02-and-its-iphone4-prices/
Posted by: Nick Metcalf 18 Jun 2010
nothing wrong with the maths
This means that an 18-month contract on the lowest tariff works out at £749, while a 24-month contract costs £879. To equate the prices divide by the duration giving the average as: £41.61 for 18 months or 36.63 for 24 Months. So I cant see anything wrong here the longer tarrif is cheaper.
Posted by: Parax 18 Jun 2010
Buy from apple then get a contract. its Cheaper in the long run
If you have the money buy one from Apple that way you can choose any carrier on a 12 month sim only contract I've just paid £499.99 for a black 16GB and gone with vodafone for 12 months sim only for £20 a month Total £739.99 far cheaper than any deal being offered at the moment. Also the £20 deal give me 600mins Unlimited Text and 500mb internet (remember to ask for a micro sim)
Posted by: Ben 18 Jun 2010