New phone

[Matey]

Why are contract prices cheaper than if you purchase a phone in a store??

[pgn]

Because your contract spans 2 or 3 years, spreading the cost out each month until it is all paid off, @Matey.

https://www.o2.co.uk/help/pay-monthly/o2-refresh-explained

[jonsie]

Always best to purchase online

Same as any other store bought goods from anywhere, overheads and staff wages etc

[Enlli]

Depends how and when you buy. Biding your time and checking deals brings some surprising results.

My S23 plus bought 1 month after release was cheaper than the present 3 year deal currently on O2.