O2 has launched a new leasing system for the iPhone. The company now allows you to rent an iPhone 4S on a 12 month contract for £55/month. At the end of the contract you post the phone back to O2.
When paying £55/month to O2 you get a 16GB iPhone 4S (£65/month for 32GB model). With that you get insurance, 500MB data, unlimited texts and 750 minutes.
The deal might not be the best for some (or all people) though as you don’t own the phone like you would if you complete an 18 or 24 month contract or buy it outright. iPhones typically retain quite a good value in that a past generation device can typically sell for between £300 to £350 losing you £200 at the most if you keep it in good condition. However, the contracts are cheaper if you buy the phone out right and get a SIM only deal. You still get decent minutes and data and get to keep the phone to sell on at the end.
The 12 month contract will appeal to some though as Apple normally refreshes the device to the next generation on a 12 month cycle, so that’s something to keep in mind.
But, taking a look at Tesco Mobile who also uses the O2 network, they offer 12 month contracts and doing the maths it actually works out a better deal over there. Take the £35/month plan with a similar amount of minutes/texts and more data. You end up paying the same over the year within just a few GBP and still retain the phone at the end.
So, before jumping in you need to make sure you do the maths. Paying £235 up front might not be an option so there’s that to consider too. A quick summary:
O2 Lease – £55/month = £660/year
Tesco 12 Month £35/month = £420/year + £235 for iPhone 4S = £655. Also you get to keep the phone and if I remember correctly, Tesco Mobile will unlock it for you at the end of the contract.
One thing you don’t get is insurance on the Tesco Mobile device.
The full O2 press release is over here.
Via: Geeky Gadgets
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