A UK Perspective - Weighing iPhone 3G’s Cost
Published: Friday, June 27, 2008
When I read that Apple’s iPhone 3G was going to be made available on a contract-free O2 Pay & Go tariff in the UK, I thought that perhaps I would finally climb aboard the iPhone train and discover whatever I had been missing.
But after a little ‘research’ and number crunching, it appears that as an option to the original iPhone on an O2 contract, things don’t seem to be that much cheaper. I won’t go again into the details as to why I want to avoid a contract—I already have commented on this—but cost wise, the Pay & Go tariff appears to be almost as expensive as an iPhone on a contract.
O2 let the cat out of the bag regarding the Pay & Go tariff earlier this week, by mistake it would seem, as the page was taken down quickly, shortly after we reported on it. It was online long enough for me to get some figures to work on. Looking at the 16GB iPhone 3G, O2 wants £359.99 ($715) on the Pay & Go tariff with six months unlimited browsing and Wi-Fi with an option to continue after the six months for £10 ($20) a month. On top of this, there is a minimum monthly “top-up” of £10 upwards which gives an allowance of X number of minutes, depending on which of the many tariff packages you opt for—calls, texts or a mix of both. I personally find the O2 tariffs confusing. If you use 18 months as a period to add the cost up, it works out to approximately £659.99 ($1,311). It could be more if you decide to add one of the O2 “Bolt-On” packages; for example, £10 a month for the calls, then £7.99 ($16) for texts, then £10 for unlimited browsing/wi-fi - that’s £27.99 ($56).
For the same model of iPhone on the £30 ($60) a month contract, the phone would cost £159 ($316) and with 18 months at £30 a month the total cost of ownership would come to £699 ($1,389). That’s only £39 ($78) more than on the Pay & Go option.
From calling into my local O2 store today, it seems that the iPhone 3G on the Pay & Go package will not be available until September. I wonder if by then O2 will have had a rethink and changed the tariffs again due to lack of interest?
Or maybe I will have had a rethink and will have opted for a contract. We’ll have to see. The prices certainly aren’t going to get me to queue for the launch, that’s for sure.
If you have a comment, news tip, advertising inquiry, or coverage request, a question about iPods or accessories, or if you sell or market products, read iLounge's Comments + Questions policies before posting, and fully identify yourself if you do. We will delete comments containing advertising, astroturfing, trolling, personal attacks, offensive language, or other objectionable content, then ban and/or publicly identify violators. Wondering why we're talking about something other than iPods? Check the Archives: Backstage has been here and kicking it since 2004.
- Apple TV adds ABC, Bloomberg, Crackle, KORTV
- AT&T CEO: Bye, device subsidies, hello financing
- Apple hires radio exec for iTunes Radio
- Apps: 12 Days of Gifts, The Animal Alphabet Singers, Drawing Together + FIFA
- China Labor Watch seeks investigation of Pegatron deaths
- Dec. 20 deadline for CES Best of Show Submissions
- Report: Forstall advising startups, involved in philanthropy
- Lightning developer leaves Apple, redesigns Square Reader
- China Mobile opens iPhone preorders on Dec. 12
- Apple, others call for govt. surveillance reform
- Kanex Foldable iDevice Stand
- Olloclip Macro 3-in-1 Photo Lens for iPhone 5/5s
- Belkin APEX360 Advanced Protection Case for iPad mini
- STM Grip 2 for iPad Air
- CM4 Slite Card Case for iPhone 5c
- Newer Technology NuGuard KX for iPad Air + iPad mini
- The Joy Factory aXtion Bold for iPad Air
- OtterBox Defender Series Case for iPad Air + iPad mini with Retina display
- Tabu Lumen TL800 App Enabled LED Color Smart Bulb
- Wren V5BT Bluetooth Wireless Speaker
- Syncing multiple iCloud data with a family Mac
- iMessages come in from email address instead of phone number
- Whether to include specific apps in iCloud backups
- Passcode entry field not appearing on iPhone
- Custom ringtones assignments don’t sync to iCloud
- Resuming incomplete iCloud backups
- Adding multiple photos to a Shared Photo Stream
- Quality of videos sent via Messages
- Text messages being delivered to wrong iPhone
- Problems logging in to iTunes Store