iPhone SE 64GB - £504 over 2 years vs £409 outright

allygate

Hi, I was planning to buy an iPhone SE 64GB this week. I usually go for sim-free phones and use with my £6/month giffgaff plan. This usually works out significantly cheaper than any contract.

The MSE email from yesterday has an offer of 0 upfront, 2 year contract at £21/month for the iPhone SE 64gb version which comes to about £504 over the 2 years (possibly a bit more due to contract price hikes). The cheapest I can find a sim-free version online is for £409 (which is what I was going to buy). With the £6/month to giffgaff, the total cost over 2 years would be £553.

So the offer in the MSE email appears to be
1. Saving me about £40-50 over the 2 year contract term and
2. Spreading the cost over the 2 years

Other than the disadvantage of being locked in to EE for 2 years, is there anything else that I'm missing in the comparison?
Thanks,
Ally

Nebulous2

I don't see any flaws in your thinking - as long as you get enough minutes / data included. Where we are EE has the best network coverage.

I don't buy very fancy phones, and used to take contracts with cashback. I was very good at remembering to put the claims in, but it did take a bit of work. I pay for phones for several family members, so small savings add up over the year. For 3-4 years now I've been on sim-only contracts and bought phones separately. 

I'm noticing now that the balance seems to be tipping back in favour of contracts. One of my children is now working and has just taken over her number and started a phone contract in her own name. She got a very good deal, which again like yours was cheaper than buying separately, on a pixel 3a - direct from EE, which surprised me. 

becks_w78

I’ve been considering this deal too as I’m ready for a new phone. However, I noticed this morning it’s saying calls to other mobiles will cost 65p a minute. I’m unsure why it’s not included in the monthly call tariff. I don’t want to be paying for every call I make! Have I understood it correctly?!

allygate

becks_w78 said:

I’ve been considering this deal too as I’m ready for a new phone. However, I noticed this morning it’s saying calls to other mobiles will cost 65p a minute. I’m unsure why it’s not included in the monthly call tariff. I don’t want to be paying for every call I make! Have I understood it correctly?!

I've got the deal now and it's an unlimited minutes and texts contract. Not sure what they mean by the 65p tariff, sorry.

Frozen_up_north

Ally, you might also check USwitch to see how their deals compare. In some cases they have prices that are cheaper than going direct to the network, even though they link you to the network, ie you deal with the network, not directly with USwitch.
Some of the USwitch exclusive SIM only deals are not only cheaper, but of shorter minimum term too.
As always, check coverage with a PAYG SIM and read the small print carefully, before committing to a contract.

Harald

There is no need to make choice.
Apple is selling phones with 24 month finance 0% APR. And it's sim free. Buy phone with finance and go for sim only of your choice. Uswitch is having good EE offer right now, 12 month contract.