Tesco sparks iPhone price war with £20 a month contract

An iPhone price war has been triggered with news Tesco is to sell the iconic device on a £20 a month contract. Theentry of Tesco into the iPhone market means that the cheapest way ofbuying and running one amounts to £462 with a one year contract. This is made up of £222 for one of the original 3G models with an 8GB memory and 12 monthly payments of £20.

Over 18 months, the figure would be  £582, which is some £43 cheaper than the equivalent deals from current iPhone providers. Thesupermarket is taking on established mobile phone networks, Orange andO2, in the battle for sales in the crucial Christmas trading period. The pressure to cut prices will be turned up in the new year when Vodafone will also start offering the iPhone. Currently,both Orange and O2 insist on customers signing up for a minimum 18months for those who buy the iPhone on a contract basis.

Thismeans the cheapest way of buying and running an iPhone 3G works out at£624.98 with Orange. That is a handset price of £96.50 and a monthlycharge of £29.36. The price with O2, which originally hadexclusive rights to sell the iPhone when it was first launched inNovember 2007, works out at  £625.73 for a similar deal.

Mobilephone handset prices and tariffs are notoriously complex, which meansmaking a like for like comparison is virtually impossible for consumers.

 

Read more: http://www.dailymail.co.uk/sciencetech/article-1234790/Tesco-sparks-iPhone-price-war-20-month-contract.html#ixzz0ZIdffXNw

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Tesco to offer iPhone in the UK

Supermarket giant Tesco has joined a growing number of UK firms offering Apple’s popular iPhone.

A spokesperson for the firm said that it hoped to offer the phone “in time for Christmas”. Although Tesco has not revealed tariffs, the spokesperson said that its prices were “competitive”. In September, it was revealed that O2 had lost its exclusive deal to sell the phone, which had been in place since its launch in 2007. Both Vodafone and Orange have signed deals to sell the phone.

Orange has already begun selling the touchscreen whilst Vodafone will offer it from early 2010. Orange said it had sold more than 30,000 handsets on its first day. Tesco Mobile is a joint venture with O2. It offers phones on both contract and pay as you go tariffs from its stores around the UK. O2 has offered the iPhone in the UK for more than two years. Its popularity allowed the firm to win subscribers from other networks, according to analysts. Earlier this year, O2 said it had sold more than 1m of the phones. All of the firms will offer the iPhone 3G and the newer iPhone 3GS.

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