is the o2 iPhone PAYG value for money ?

So, is the o2 PAYG iPhone going to be value for money ?

Lets break it down to look at the cost of owning an iPhone 3G on o2 payg.

Firstly, we need to get the payg and contract iphones on a level playing field, which means adjusting for the difference in contract periods.

Cost of iPhone 3G 8GB - £349
Monthly topup      -  £15
*Data charges (6 mths) -  £10

The PAYG sim required for use on the iPhone has free data and wifi usage for 12 months, reverting to £10 a month after that. I have put the data charges in for 6 months to compare the cost of the iphone for 18 months, as that is the length of the contract iPhone.

So for 18 months -

Iphone 3G Cost        349
18 x £15 topups        270
6 x £10 data charges     60

Cost of ownership       679

Cost per month        37.72

The cost of the handset has priced itself out of the market, as the contract version includes more inclusive minutes, and most importantly, free text messages and free calls to any network.

So, judging by the fact most people wont have £349 lying around spare to buy the iphone 3g payg, bag yourself a free iphone 3g and dramatically reduce the cost of ownership !

Still fancy a contract iphone ?

Then sign up here for a free iphone 3g voucher and save yourself the cash, go direct to the apple store and give them your voucher !

This entry was posted on Wednesday, September 17th, 2008 at 2:59 pm and is filed under Uncategorized | . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “is the o2 iPhone PAYG value for money ?”

  1. Free iPhone 3G's Weblog Says:

    o2 iphone 3g payg reviewed…

    So, is the o2 PAYG iPhone going to be value for money ?
    Lets break it down to look at the cost of owning an iPhone 3G on o2 payg.
    Firstly, we need to get the payg and contract iphones on a level playing field, which means adjusting for the difference i…

  2. SteveW Says:

    That breakdown assumes that everyone is going to do a £15 a month top up… personally I never ring anyone on my phone, I just text… I topup maybe £10 every 2 months maximum!

    So in my case (I want the 16Gb iphone) on a contract the handset would be £159, then 18 months at a minimum of £30 a month for 18 months so a grand total of £699

    On PAYG, the handset is £399, 9 £10 topups is £90 plus 6 months at £10 a month for data comes to £549, a saving of £150!

    Plus then look at the following 6 months.. on contract it would be £180, on PAYG it’ll be £90!

    If you just try and work out value for money based on getting a PAYG to get the same deal as a contract one then obviously there is not going to be a cost saving… but PAYG means that people like me have the flexibility to only pay for what we use, not what we don’t!

  3. Free Gadgets Says:

    Theres a minimum top up on o2 payg for iphone ! £10 a month, there pricing scheme on payg is not the best, based on the home postcode thing.

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