Difference in iPhone 5S cost Apple vs O2

[Anonymous]

Like the majoirty, I'm waiting for the 5S, having beeng on a rolling O2 contract with my 4S from launch.

Based what been released re: prices and tariffs by O2, I've been workng out my best option.

I have noticed that the handset price stated by apple (http://store.apple.com/uk/buy-iphone/iphone5s) is between £51 - £70.99 cheaper than O2's upfront cost. (depending on the model). 

I'm asking more out of curiosity - why is this? and if thats the case, could I ultimately buy the iPhone from apple, and get a tariff 4g sim from O2? 

[Anonymous · Accepted solution]

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@Anonymous wrote:

Like the majoirty, I'm waiting for the 5S, having beeng on a rolling O2 contract with my 4S from launch.

Based what been released re: prices and tariffs by O2, I've been workng out my best option.

I have noticed that the handset price stated by apple (http://store.apple.com/uk/buy-iphone/iphone5s) is between £51 - £70.99 cheaper than O2's upfront cost. (depending on the model). 

I'm asking more out of curiosity - why is this? and if thats the case, could I ultimately buy the iPhone from apple, and get a tariff 4g sim from O2? 

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Do you mean buy the iphone 5s from an apple store unlocked sim free ?

If so then yes you can.

This is what I do and put my pay as you go sim in it.

Then get a 4g sim card and tariff from o2.

In my experience rule of thumb buying something outright is typically cheaper than buying something in instalments.

[Anonymous]

Exactly that.

However, looking at the 4g Sim only option (12 months), they are £4 per month more expensive than the O2 Recycle tariff (24 months). That equates to £48 over the 12 months, which takes a large dent out of the saving made by going sim only.

Only benefit I can see is that your not tied into a long (24 month) contract.

[Anonymous]

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@Anonymous wrote:

Exactly that.

However, looking at the 4g Sim only option (12 months), they are £4 per month more expensive than the O2 Recycle tariff (24 months). That equates to £48 over the 12 months, which takes a large dent out of the saving made by going sim only.

Only benefit I can see is that your not tied into a long (24 month) contract.

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True regarding your last part and thats the primary reason why I always buy sim free.

[Anonymous]

Sound reasoning.

Is the main benefit fOR Sim Only the no need for A contract, and thus benefit from lower tarrifs? and flexibiility to move? I would assume you will be staying on the standard "3G" network on not 4G?

[Anonymous]

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@Anonymous wrote:

Sound reasoning.

Is the main benefit fOR Sim Only the no need for A contract, and thus benefit from lower tarrifs? and flexibiility to move? I would assume you will be staying on the standard "3G" network on not 4G?

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I prefer to stay on o2 payg for a few reasons.

I can change my tariff every month if I so wish.

I can opt to top up or not as my tariff will just re start when I do. No charges etc.

My allowances are pretty much on a par with normal contract allowances.

My 3G is stable where I live, commute and work.

4G is available where I live and should be available to payg by year end.

The Apple supplied iPhone is factory unlocked when purchased directly, so yes I can swap and change network sims.

Last year o2 would not unlock the iphone 5 to all networks for quite a long time.

[Anonymous]

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@Anonymous wrote:

Exactly that.

However, looking at the 4g Sim only option (12 months), they are £4 per month more expensive than the O2 Recycle tariff (24 months). That equates to £48 over the 12 months, which takes a large dent out of the saving made by going sim only.

Only benefit I can see is that your not tied into a long (24 month) contract.

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Yes, It looks like O2 is giving unfavourable terms to Sim Only customers

It also doesn't help their "Sim Only" Tarrif page says Sim Only is "iPhone (not available on O2 4G)" despite the Refresh page listing iPhones

[Anonymous]

I can only assume that the "not available on 02 4g" is based on the current iPhone 5.

Sim free would have been an option. I've worked out that the 16gb version, paying £169.99 up front and £15 pm actually equates to an overall cost for the iPhone of £529.99, £20 less than what Apple are selling them sim free.

I maybe wrong, but i think thats the only scenario offered by O2 that this is the case. Also, depends on getting the 16gb version.