Contract or outright purchase?

friendlygiraffe

Hi, I'm currently shopping for the iPhone5 s 64GB, but I'm getting frustrated with various offers from phone companies

Whichever deal I look at (Vodafone's website for example), it adds up to over £1000, however, to purchase the iPhone from the Apple store is £709.

Is buying outright cheaper?

baby_frogmella

friendlygiraffe wrote: »

Hi, I'm currently shopping for the iPhone5 s 64GB, but I'm getting frustrated with various offers from phone companies

Whichever deal I look at (Vodafone's website for example), it adds up to over £1000, however, to purchase the iPhone from the Apple store is £709.

Is buying outright cheaper?

Yes buying outright is cheaper however the likes of Vodafone can give you pretty hefty discounts on 24 month duration pay monthly contracts with a free phone thrown so you can sell the brand new handset on eBay, put the cash towards sim free iPhone from Apple and Use the sim in your new iPhone. Vodafone recently gave me 50% off the red plan with 2gb of data and a free sony Xperia L thrown in for free, all for £17 a month with iPhone tethering included. So in effect my iPhone 5s cost me only £349 as I managed to sell the Xperia handset for £200.

ZhugeEX

You do realise that Vodafone give you mins/texts/data and that Apple don't right...? So of course it's more expensive.

But yes, it's pretty much always cheaper and more beneficial to buy the phone out right and go on a sim only.

But seriously, who spends £710 on a phone when you can get a phone + 64GB memory card which does the same things for under £250.

baby_frogmella

ZhugeEX wrote: »

But seriously, who spends £710 on a phone when you can get a phone + 64GB memory card which does the same things for under £250.

So which phone runs iOS, lets you use a 64gb memory card and costs £250? Oh you mean an Android handset? But that's comparing oranges to apples ( no pun intended).

ZhugeEX

baby_frogmella wrote: »

So which phone runs iOS, lets you use a 64gb memory card and costs £250? Oh you mean an Android handset? But that's comparing oranges to apples ( no pun intended).

There are Windows Phones as well.

Unless you specifically need an iPhone there is no need to spend the expense. Judging by the OP's first post it seems he/she does not need one.

NFH

Avoid phones supplied by mobile networks; they are funded by a disguised loan. Subsidising handsets through inflated monthly service charges:

• 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.

Cycrow

Buying on Contract isn't always more expensive.

I got a contract with a phone where i was paying £15 more a month on top of a sim only deal.

the phone was selling at £500-600 at the time.

plus i could get my phone unlocked for free without fuss.


But as a new customer to a network, its less likely to work out cheaper

NFH

Cycrow wrote: »

Buying on Contract isn't always more expensive.

True, but with iPhones it nearly always is.

friendlygiraffe

Thanks for your help, I wouldn't want to purchase another phone apart from the iPhone5 s 64GB, no matter how I add it up it seems buying outright is cheaper, even when adding up the costs of calls etc..

Particularly interesting about getting a 24 month contract and then selling the handset on eBay.

baby_frogmella

ZhugeEX wrote: »

There are Windows Phones as well.

Unless you specifically need an iPhone there is no need to spend the expense. Judging by the OP's first post it seems he/she does not need one.

Well common sense would suggest someone who wants to buy an iPhone wants a phone with iOS operating system on it. I don't think anyone NEEDS a £500+ phone just like no-one NEEDS a car costing £50k but if you work hard and can afford such luxuries then why settle for second best? This site is about money saving not penny pinchin

Cycrow

of course, theres many people who believe they can afford the luxuries, buy them on credit then run into trouble later on