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.
- Apple’s new ‘Echo rival’ may feature a camera
- Apple ‘working rapidly’ to extend Apple Pay to more countries
- Report: Apple’s Siri-based Amazon Echo competitor will be a new Apple TV
- Report: Apple SVP Eddy Cue proposed bid to buy Time Warner
- Beta testing for Pokémon GO begins in the U.S.
- Apple’s plan to open stores in India hits a snag (Update: India’s finance minister ratifies ruling)
- Apple looking into charging stations for electric cars
- Apple hires hint at improvements in encryption, health monitoring
- Hyundai adds CarPlay support to more vehicles
- Plaintiffs file new motion to keep ‘Error 53’ Touch ID lawsuit alive
- OtterBox Symmetry Series Hybrid Case for 12.9” iPad Pro
- Logitech Logi BASE Charging Stand for iPad Pro
- Twelve South TimePorter for Apple Watch
- August Doorbell Cam
- August Smart Lock HomeKit enabled + Smart Keypad
- ecobee3 HomeKit-enabled smart Wi-Fi thermostat
- Zagg Now Cam
- Yantouch EyE Portable Wireless Speaker
- Netatmo Wind Gauge
- Incipio Stashback for iPhone 6/6s
- Filling the Gap: A look at third-party HomeKit apps
- Instant Expert: Secrets & Features of tvOS 9.2
- Instant Expert: Secrets & Features of iOS 9.3
- Opinion: Why Apple needs a dedicated HomeKit app
- Inside the betas: What’s new in iOS 9.3 and tvOS 9.2 (Updated)
- Life with HomeKit: Our experiences with Apple’s home automation system
- Under the Radar: 10 ‘hidden’ details about the new Apple TV
- Instant Expert: Secrets & Features of iOS 9.0
- Under the Radar: A closer look at smaller iPhone 6s and iPhone 6s Plus changes
- A First Look at iOS 9’s Transit in Apple Maps (Updated for watchOS 2)