iphone6 Device Cost?

[Anonymous]

According to Apple the base model 16gb iphone 6 is £539. This i assume is there RRP.

Now when you go to the o2 tariffs for the same base model 16gb iphone 6 on the right hand side it says the device price is £629.99, why is this?

Speaking with the online chat it is because of the premium nature of o2 and having to pay for there features. So i asked ok if that is the case if i went to a sim only contract what features would i lose out on? As i could change my current jump contract to a sim only deal and go to apple direct but still get all of o2's services.

At this point i got radio silence for several minutes before being told we dont do payg on iphone 6 which i no but they couldnt explain why we have to pay £90 over the RRP.

And when the price of a iphone 6 with 2gb data is £38 with £129.99 upfront it seems the £90 over RRP on device cost would bring this down to a very reasonable £40.

I understand business has to make money but o2 wont be paying RRP for the devices so seems over the top to expect customers to pay £90 over RRP.

[Anonymous]

I would really like to know this too!

Mobiles have always been vastly more expensive through the networks directly and from what i can tell, there is absolutely no reason for it.

I guess they just hope suckers will go directly through them without researching the available deals.

[viridis]

Different tariffs offer different handset prices.
I believe this tariff offers the cheapest handset cost:

Duration of agreement 24 months
Device cash price £629.99
Upfront cost £49.99
Credit amount £480.00
Interest rate (fixed) 0%
Representative APR 0%
Monthly device payment £20
Device amount payable £529.99
Monthly airtime payment £28

Device amount payable is the total cost which is cheaper than apple

[viridis]

£49.99 upfront cost
£20 Device Plan
£28 Airtime Plan

[MI5]

On some tariffs it works out £10 cheaper than the RRP but either way the prices are there in plain sight for people to decide if they want to pay them or not.
Some will be happy to pay, others won't.....

[Anonymous]

I get the prices are there for us all but if the payable amount is £529.99 where do they get the device cost of £629.99 from?

Is seems that this is just a number plucked out that doesnt affect the payable amount at all.

[MI5]

It could well be just a value that is applied for the credit terms - It doesn't relate to an actual tariff price.....

[Anonymous]

This something that has been broached before on previous iPhones too.

O2 set their own handset price on them which can be higher than buying the sim free factory unlocked option from Apple.