MSE News: iPhone 5C price plans launched: Is it worth it for you?

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"Price plans for Apple's iPhone 5C, which is available to order from today ahead of its release next Friday, are out..."
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iPhone 5C price plans launched: Is it worth it for you?

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  • ZhugeEX
    ZhugeEX Posts: 1,163 Forumite
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    It's ridiculous. The iPhone 5c is a rebadged iPhone 5 with a plastic back. Yet every single contract is over £35pm+ with an upfront cost. If you want a high usage contract you're looking over £40pm+ with at least £30-£100 upfront.

    You can get an iPhone 5 for much much less than that. If these are the iPhone 5c prices i don't want to see how much people are going to pay for the 5s.
  • corbyboy
    corbyboy Posts: 1,169 Forumite
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    Another Apple advert brought to you courtesy of MSE.
  • NFH
    NFH Posts: 4,373 Forumite
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    Avoid a bundled handset and service contract, particularly with iPhones. It's nearly always cheaper overall to pay full price for the iPhone (from Apple) and to get a cheap SIM-only contract for £10 to £15 per month.

    Why has MSE focussed mainly on acquiring subsidised handsets? I'm totally against the practice of subsidising handsets through inflated monthly service charges because it:
    • Encourages consumers to acquire handsets they cannot truly afford through an unhealthy "buy now pay later" consumer debt culture.
    • Distorts competition by disguising the true price of the handset and of the service, as opposed to a SIM-free handset and SIM-only service.
    • Encourages wasteful acquisition of new handsets because consumers mistakenly believe they are receiving the handset for free or for very little.
    • Necessitates long contract durations in order to spread the cost of the handset, which inhibits competition by preventing consumers from switching networks.
    • Causes consumers to continue paying the inflated monthly charge even after they have paid off the subsidy of the handset, unless they remember to take action at the end of the minimum contract period.
    Subsidised handsets are usually SIM-locked which:
    • Inhibits competition as it makes it more difficult to switch networks.
    • Prevents consumers from using local SIM cards abroad, allowing UK networks to impose unreasonably high roaming charges by excluding foreign competition.
  • flibblesan
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    corbyboy wrote: »
    Another Apple advert brought to you courtesy of MSE.

    MSE suggest that buying Samsung or HTC devices is better as they cost less each month than equivalent iPhone tarrifs. Hardly an advert for Apple.
  • thatsean
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    NFH wrote: »
    Avoid a bundled handset and service contract, particularly with iPhones. It's nearly always cheaper overall to pay full price for the iPhone (from Apple) and to get a cheap SIM-only contract for £10 to £15 per month.

    Why has MSE focussed mainly on acquiring subsidised handsets? I'm totally against the practice of subsidising handsets through inflated monthly service charges because it:
    • Encourages consumers to acquire handsets they cannot truly afford through an unhealthy "buy now pay later" consumer debt culture.
    • Distorts competition by disguising the true price of the handset and of the service, as opposed to a SIM-free handset and SIM-only service.
    • Encourages wasteful acquisition of new handsets because consumers mistakenly believe they are receiving the handset for free or for very little.
    • Necessitates long contract durations in order to spread the cost of the handset, which inhibits competition by preventing consumers from switching networks.
    • Causes consumers to continue paying the inflated monthly charge even after they have paid off the subsidy of the handset, unless they remember to take action at the end of the minimum contract period.
    Subsidised handsets are usually SIM-locked which:
    • Inhibits competition as it makes it more difficult to switch networks.
    • Prevents consumers from using local SIM cards abroad, allowing UK networks to impose unreasonably high roaming charges by excluding foreign competition.

    Everything this person said.

    If you have to buy the device and pay monthly, then an "anytime upgrade" style plan is the only way to do it, at least that way you know how much the tariff and phone cost, and you can pay off the phone if you wish.
  • ZhugeEX
    ZhugeEX Posts: 1,163 Forumite
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    NFH wrote: »
    Avoid a bundled handset and service contract, particularly with iPhones. It's nearly always cheaper overall to pay full price for the iPhone (from Apple) and to get a cheap SIM-only contract for £10 to £15 per month.

    Why has MSE focussed mainly on acquiring subsidised handsets? I'm totally against the practice of subsidising handsets through inflated monthly service charges because it:
    • Encourages consumers to acquire handsets they cannot truly afford through an unhealthy "buy now pay later" consumer debt culture.
    • Distorts competition by disguising the true price of the handset and of the service, as opposed to a SIM-free handset and SIM-only service.
    • Encourages wasteful acquisition of new handsets because consumers mistakenly believe they are receiving the handset for free or for very little.
    • Necessitates long contract durations in order to spread the cost of the handset, which inhibits competition by preventing consumers from switching networks.
    • Causes consumers to continue paying the inflated monthly charge even after they have paid off the subsidy of the handset, unless they remember to take action at the end of the minimum contract period.
    Subsidised handsets are usually SIM-locked which:
    • Inhibits competition as it makes it more difficult to switch networks.
    • Prevents consumers from using local SIM cards abroad, allowing UK networks to impose unreasonably high roaming charges by excluding foreign competition.

    Or just don't buy a phone at all....

    :D

    Na, i agree with everything you said. However, in some cases (not talking iPhones here) it can be cheaper to go on a contract. Especially if you can negotiate a loyalty deal. For example i'm paying £12.50pm on Three's One Plan for the past 1 and a half years now.
  • Earthworm
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    Anyone think it is a little weird O2 pitching the Refresh handset cost of the 5C as £600? The way they do this is by selling the handset as a credit agreement stating the up-front cost with 0% interest for 24 months. Someone with a bit more knowledge in this will have to help but are they allowed to inflate the cost by 30%? To me it just looks like they have added the interest into the total cost at a large rate and positioned it as 0%. What happens when they then start selling the PAYG model side by side for under £500?
  • ZhugeEX
    ZhugeEX Posts: 1,163 Forumite
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    Earthworm wrote: »
    Anyone think it is a little weird O2 pitching the Refresh handset cost of the 5C as £600? The way they do this is by selling the handset as a credit agreement stating the up-front cost with 0% interest for 24 months. Someone with a bit more knowledge in this will have to help but are they allowed to inflate the cost by 30%? To me it just looks like they have added the interest into the total cost at a large rate and positioned it as 0%. What happens when they then start selling the PAYG model side by side for under £500?

    Well then you have to sign up for the sim only. O2's refresh is £17pm for unl calls/texts 1GB data but the sim only is £21pm. So it's basically give and take.

    Some would rather not pay £500 upfront and would rather pay in monthly installments. So yes. O2 can do it, yes it does have advantages, but it also has disadvantages as well.

    But it's a much better system than tying you in for 24 months IMO. Even if it is a bit more expensive.
  • Earthworm
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    I was under the impression the Refresh Airtime plans were lower than SIM only prices because they were spread over 24 months. I definitely think it is worth just buying an iPhone outright and enjoying much lower bills.
  • Kite2010
    Kite2010 Posts: 4,304 Forumite
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    flibblesan wrote: »
    MSE suggest that buying Samsung or HTC devices is better as they cost less each month than equivalent iPhone tarrifs. Hardly an advert for Apple.

    But does "Samsung/HTC announces new phone" get a news story about it?
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