iPhone 5 on Refresh more expensive than on PAYG

[Deag]

Why is the iPhone 5 on refresh more expensive than buying it on PAYG. 16GB is £600 on Refresh and on PAYG it is £549.

Would seem to imply that although there is no interest charge you pay more for the phone

[Anonymous]

It's even cheaper at the Apple Store and is also fully unlocked.

£529 for 16gb
£599 for 32gb

[perksie]

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@Deag wrote:

Why is the iPhone 5 on refresh more expensive than buying it on PAYG. 16GB is £600 on Refresh and on PAYG it is £549.

Would seem to imply that although there is no interest charge you pay more for the phone

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I would guess it's because it's being sold on interest free credit over two years.

[Anonymous]

Bit of a con really in my eyes

[perksie]

I think if O2 were to shut down tomorrow you would be ecstatic!

Sadly for you and fortunately for their customers, it won't happen and we can only offer advice here.

Where else could you buy something of that value for a cost of 50 pence a week over the retail?

[Anonymous]

As I read it the £600 is the upfront Refresh price of the iphone 16gb. If taken with no upfront payment it is 24 x £20 = £480. I really don't understand...!

[perksie]

£600 is the cash price without a Refresh contract surely?

[Anonymous]

If you look at the Refresh options for iphone 5 16gb there are 4 listed - from £600 + 24 x £0 to £0 + 24 X £20.
The options in between also result in higher total payments than the 24 x £20 option.