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O2 details 24-month iPhone contract

by Parm Mann on 23 March 2009, 12:20

Tags: iPhone 3G, Apple (NASDAQ:AAPL)

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Been holding out for O2 to slash the up-front costs of purchasing Apple's hugely-popular iPhone?

Well, if the revamped tariffs and 18 month deals haven't managed to lure you in, there's now another option - the ability to bag either the 8GB or 16GB iPhone 3G for free when signing up to a 24 month contract.

Beginning April 3rd, O2 will be introducing its lengthy 24 month contracts as an option for those looking to bypass the traditionally-costly start up fees associated with Apple's high-end handset. According to O2, the iPhone "is getting cheaper but only with a new 24 month contract". Here's how its tariffs will be shaping up:

Monthly Charge (inc 15% VAT)
Contract term
24 month
24 month
Data (MB)
Wi-Fi Hotspots
iPhone 3G 8GB Price (inc 15% VAT)
iPhone 3G 16GB Price (inc 15% VAT)

Despite the omission of handset-purchasing fees, a quick calculation highlights that the free 8GB iPhone 3G carries a 24-month contract that will cost £822.24 over the course of two years. The higher-capacity 16GB iPhone 3G, meanwhile, will set customers back £1,057.20 - for reference's sake, that's more than a 2.66GHz iMac computer.

It's a substantial price to pay, but given the success of the iPhone thus far - and the hype surrounding iPhone OS 3.0 - we don't expect O2 to have much difficulty in signing up new long-term customers.

HEXUS Forums :: 7 Comments

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ermmm….. no thanks i think il stick to my smartphone contract which now that it is up and i keep insurance, i get free upgrades when they brake :D
no doubt within the next 2 years and updated version would have come out by then.
of course… with the next round of basic features that should have been included in the original lol
£35 a month for 2yrs…… thanks!!
For comparison, you're looking at £352.33 for the 8GB (a mere £17.61 a month at 17.9% APR) or £401.27 for the 1GB (£20.05 a month at 17.9%) APR

If you put it that way, it's actually not a terrible deal, the data plans they're offering are in line with a £20 or £25 a month tarrif, so basically O2 are just replacing your typical credit card company.