UK iPhone users. Martin's Money Tips and Advice.

[tejaykay]

Nice little article with very useful information.

http://www.moneysavingexpert.com/deals/cheap-iphone

What do you think? I'm definitely going for the 32GB on £44.05 then downgrading after 9months.

 

[alFR]

Well, it depends. I personally disagree with him about the 2-year contracts: it works out about £100 cheaper for a 32Gb 3GS over 2 years for a 24-month as opposed to an 18-month £35 contract, so if like me you're happy upgrading every other year (since it looks like the changes each year will be evolutionary rather than revolutionary, like the iPod changes have been) that makes perfect sense.

Also, with the yearly upgrades to the phone coming out this time of year you don't really gain anything from an 18mo contract as if you take one out now you'll just end up out of contract 6mo before the new model comes out. Again, why not save yourself some cash and take out the 2-year one then be ready to upgrade just after the new model is released?

 

[smr]

Well, it depends. I personally disagree with him about the 2-year contracts: it works out about £100 cheaper for a 32Gb 3GS over 2 years for a 24-month as opposed to an 18-month £35 contract, so if like me you're happy upgrading every other year (since it looks like the changes each year will be evolutionary rather than revolutionary, like the iPod changes have been) that makes perfect sense.

Also, with the yearly upgrades to the phone coming out this time of year you don't really gain anything from an 18mo contract as if you take one out now you'll just end up out of contract 6mo before the new model comes out. Again, why not save yourself some cash and take out the 2-year one then be ready to upgrade just after the new model is released?

I was considering a 24 month contract, but will go for 18 months. I don't think a fixed, 12 month iPhone upgrade cycle by Apple is guaranteed. They they might well bring out a significant upgrade earlier or later than every 12 months, so you are not guaranteed to stay in sync with a 24 month contract. I want as short a contract as possible, so I have the earliest/cheapest upgrade options open to me.

 

[tejaykay]

I don't think a fixed, 12 month iPhone upgrade cycle by Apple is guaranteed.

I disagree. They've got expectations to meet now. Just wish there had been a hardware revision this year.

• 24months with 32GB S (18month contract dropping down a tariff tier after 9 months, then moving on to the sim only tariff for the remaining 6months to meet the 2011 upgrade):

175.19+(9*44.05)+(9*34.26)+(6*19.58) = £997.46

175.19+(9*44.05)+(9*34.26)+(6*28.39) = £1056.24

175.19+(18*44.05)+(6*28.39) = £1144.37

• 24month contract with 32GB S

96.89+(24*44.05) = £1154.09

So you can see that any changes are better on the 18month contract when compared to the 24 months.

 

[thefunkymunky]

I can't stand that Martin guy he's such a muppet. One of the most irritating people.

 

[Kebabselector]

• 24month contract with 32GB S

96.89+(24*44.05) = £1154.09

How about 24 month contract at £34.26

24 x 34.26 + 175.19 = £997.43

Though one thing not factored in the increase in vat back to 17.5 later on this year.

This probably the deal I'll go for. Afterall, I know next year I wont be able to upgrade for 6 months after the announcement (which most likely will be the same time).

 

[alFR]

So you can see that any changes are better on the 18month contract when compared to the 24 months.

Not really: as Kebabselector says, 32Gb 3GS on 24mo contract @ £34.26:

£175.19 + (24 * 34.26) = £997.43

i.e. same as your cheapest option above and without any messing about changing tariffs, going SIM-only etc. If you like an easy life and only want to upgrade 2-yearly that looks like the best deal IMHO.

 

[ag55]

Im going for a 16GB 3gs at 44.05 for first 9 months.
Downgrade to 34.26 for the last 9.
Handset will cost 87.

Total cost will be about £10 cheaper than if
were to go 34.26 for 18 months straight.

Plus i get double mins for the first 9 months
on the 44.05.

A no brainer

 

[FrogTastic]

Im going for a 16GB 3gs at 44.05 for first 9 months.
Downgrade to 34.26 for the last 9.
Handset will cost 87.

Total cost will be about £10 cheaper than if
were to go 34.26 for 18 months straight.

Plus i get double mins for the first 9 months
on the 44.05.

A no brainer

I agree

 

[tomacwhite]

£10 cheaper over 18 months? Hardly worth it really... Unless of course you need all those minutes in the first 9 months.

 

[tomwebster99]

Covered to death already but to my mind the best option over 18 months would be PAYG and Simplicity tariff.

Phone price 32GB = £540
Tariff = 18*£19.58

Total = £892

Plus you are only on a month's notice and can therefore upgrade/ sell your phone when the next shiny new toy comes out.

Only downside would be lack of visual voicemail and free wifi neither of which count for anything in my book.

Having got shot of my 3G a few days ago for £300+ it seems a no brainer for me.

 

[tejaykay]

Though one thing not factored in the increase in vat back to 17.5 later on this year.

Good point, but the difference is negligible.

I'm into the higher tier as it's double the minutes and would normally cost you £10 more every month, however in the long-run the calculations above show that you can capitalise on minutes for less than that extra tenner a month. I guess it's to each their own.

 

[tejaykay]

Covered to death already but to my mind the best option over 18 months would be PAYG and Simplicity tariff.

Phone price 32GB = £540
Tariff = 18*£19.58

Total = £892

Plus you are only on a month's notice and can therefore upgrade/ sell your phone when the next shiny new toy comes out.

Only downside would be lack of visual voicemail and free wifi neither of which count for anything in my book.

Having got shot of my 3G a few days ago for £300+ it seems a no brainer for me.

This is definitely the best choice and the route I'd take if I had the money upfront. However, I'm already selling my touch, compact camera and old phone just so I can afford the initial purchase of the 32GB. Your option will be more realistic for me once I've served my first iPhone term!