Overcharging for OnePlus phone contracts

[welshsteve76]

I upgraded last night, and was all set to upgrade my existing OnePlus 3T to OnePlus 6.  However, when I looked at the available tariffs for OnePlus contracts I thought they were expensive.  In the end I went with a Huawei P20 Pro at a much better deal.

I got the Huawei P20 Pro at £37 per month with 4GB of data and Unlimited texts & minutes.  The phone was £109.99 up-front, although I took advantage of a discount code to get £100 off the up-front phone cost. So I pad £9.99.

The comparable contract for the OnePlus 6 is: 4GB data, Unlimited texts/minutes at £89.99 up-front and £39 per month.

So that's 2 pound more expensive per month for the OnePlus 6, and only £20 difference in the up-front cost if you take away the discount code.

Now given the retail price for the 128GB OnePlus 6 is only £519, and the retail price for the Huawei P20 Pro is £799, that's a £280 difference in the cost of the phone.

Therefore, how can O2 possibly charge so much for the OnePlus when the phone is so much cheaper that the Huawei?

Are O2 simply cashing in here?

The phone idea of OnePlus is to provide premium phone experiences at an affordable price, yet people in contracts (most people let's be honest) are still being charged the premium costs of a contract they pay for the most expensive brands such as Samsung. Doesn't seem fair really.

[Bambino]

@welshsteve76 You answered your own question. Yes, O2 are cashing in. They charge so much because they can. When did you ever hear of a phone company being fair? They're all thieves.

[pgn]

Thieving bar stewards.

I think it's almost worthwhile sticking with my OP3T (it will be getting Android P soon anyway!) for a while after my Device Plan hits zero in January... The OP6 should drop a little when the OP6T comes out...

£408 I am paying off for my 64GB OP3T, would love to hear how you got 100knicker off your Huawei.

[Skyhawk1010]

There’s a ;lot more to it than that.

What you AREN’T seeing is the private and confidential deal between O2 and Huawei. 

Yes, if you went into a shop and wanted to buy a P20 Pro £799 wouldn’t be too far off the mark. 

BUT..

Huawei will probably have an agreement with O2 resulting in a considerable kickback if O2 exceed an agreed number of handset sales via contract/PAYG/outright purchase. And it’s this kickback which allows the reduction in price, funds the promotional £100 off etc. O2 gain via connections and Huawei gain long term by the raising of its profile.

[pgn]

Good points, @Skyhawk1010. @  And OnePlus haven't the clout to offer that sort of "incentive" to O2, so O2 hike the price... Bleh.

[MI5]

Oppo don’t need to discount though as they don’t struggle to sell phones.

[welshsteve76]

---

@pgn wrote:
Thieving bar stewards.

I think it's almost worthwhile sticking with my OP3T (it will be getting Android P soon anyway!) for a while after my Device Plan hits zero in January... The OP6 should drop a little when the OP6T comes out...

£408 I am paying off for my 64GB OP3T, would love to hear how you got 100knicker off your Huawei.

---

@pgnWhen you upgrade/purchase a new contract through the O2 site, when it comes to checkout, it mentions the Huawei discount code, which you can apply in the "Got promotional code?" section of checkout.  In fact, it highlights the fact a promotion is available and asks if you wish to apply it.  The £100 then comes off when it comes to paying.