A UK Perspective - Weighing iPhone 3G’s Cost
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.
- Report: Apple pursuing studio agreements for early movie rentals
- Apple releases seventh beta of iOS 10.2 to developers
- Apple makes its picks for best iPhone, iPad and Apple TV apps of 2016
- Apple acknowledges Apple Music now includes ‘all the benefits of iTunes Match’
- Apple Music tops 20 million subscribers
- Apple blames ‘external factors’ for iPhone fires in China
- Rumor: 2017 iPhones won’t include glass chassis or wireless charging; will add red color
- Top Apple supplier Foxconn planning U.S. investment
- Apple enables Single Sign-On across all iOS 10 and tvOS 10 devices
- Apple releases fifth beta for tvOS 10.1 to developers
- Brydge 12.9 iPad Pro Keyboard
- Sen.se GuardPeanut
- iHome iZBT10 Zenergy Bedside Sleep Therapy Speaker
- Twelve South HiRise Duet for Apple Watch and iPhone
- IK Multimedia iLoud Micro Monitor
- JBL Under Armour Sport Wireless Heart Rate Headphones
- Edifier e235 Luna E Speaker System
- Clamcase ClamCase+ for 9.7” iPad Pro
- Scosche BoomBottle H2O+ Waterproof Wireless Speaker
- Thermos Connected Hydration Bottle with Smart Lid
- Top Five: The Best Products for Building a Smart Home with HomeKit
- Instant Expert: Secrets & Features of watchOS 3
- Instant Expert: Secrets & Features of tvOS 10
- Instant Expert: Secrets & Features of iOS 10
- Inside the betas: iOS 10 Photos gets Advanced Computer Vision
- Inside the betas: iOS 10 Music app delivers ‘clarity and simplicity’
- Inside the betas: iOS 10 Maps gets a major redesign
- Inside the betas: iOS 10 shakes up the user experience
- Inside the betas: watchOS 3 promises a real speed boost
- Inside the betas: A sneak peek at what’s new in tvOS 10