(UK) Upgrading Each Year ?

Discussion in 'iPhone' started by Holmes093, Oct 30, 2010.

  1. Holmes093 macrumors 6502


    Sep 28, 2010
    Please Excuse this if it has already been asked

    So the iPhone 4 is my first iPhone, and my first on contract.

    How is everyone in the U.K upgrading to the new iPhone each year. I'm currently on a 18 month contract with insurance; do you just cancel the contract and pay it off, or cancel the insurance and sell the phone ? Or am i missing something ?
  2. robbieduncan Moderator emeritus


    Jul 24, 2002
  3. Phil A. Moderator

    Phil A.

    Staff Member

    Apr 2, 2006
    Shropshire, UK

    If you want to upgrade regularly, It works out cheaper to buy your phone unsubsidised and you can upgrade as often as you like (selling the old phone on eBay if you want)

    Here in the UK we have no statutory Early Termination options so if you are on an 18 month contract at £40 a month and want to upgrade after a year, the carrier will charge you 6 x £40 (i.e. £240) or make you wait another six months.
    If you see out the full contract, then there's little or no difference in the cost: you get stung when you want to upgrade early

    To put some figures on this (using O2 as an example):

    A £20 simplicity plan (i.e. no phone included, month to month contract) gives you the exact same benefits (talk time, data, etc) as a £40 18 month iPhone contract.

    over the life of the 18 month contract, you will be paying an additional £360.00 over a simplicity contract and will also pay £239.00 for a 32GB phone, making the total cost of the phone £599

    A 32GB unlocked iPhone will also cost you £599 so the total paid is the same

    However, if you look at upgrading after 12 months, things are a little different:

    On the subsidised contract, you have paid 20 x 12 (=£240) more for the 12 months contract, plus £239.00 for the phone, plus £240 for the balance of your 18 month contract so you can upgrade early.

    This makes a total of £719.00 for the phone over the 12 months

    Therefore, if you want to upgrade every year, you definitely save money by buying unsubsidised. If you can keep your phone for the life of an 18 month or 24 month contract, then you don't pay any more (at least with O2) and you are effectively getting an interest free loan from the provider

    Of course, the big thing to remember when paying for a subsidised phone contract is always make sure you upgrade as soon as you can, otherwise you'll continue to pay the extra monthly cost with no benefit at all!
  4. netdog macrumors 603


    Feb 6, 2006
    I skipped the 3GS and will probably skip the 5.
  5. Carlanga macrumors 604


    Nov 5, 2009
    if you want to upgrade each year, just buy it factory unlocked unsubsidized and sell the older one for a good chunk of change...

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