Key facts
- Consumers can overpay by over £1,000 on SIM costs for the iPhone Duo when buying on contract.
- Handset repayment costs on contract can be around £170 higher than the outright purchase price.
- Major networks charge approximately £37 per month for unlimited data SIMs on four-year contracts.
- Virtual network operators offer similar unlimited data plans for as low as £15 per month.
- Annual price increases on network contracts further escalate the total cost.
Buying a new iPhone on a contract can lead to significantly higher costs than purchasing the handset outright and opting for a separate SIM-only plan, according to analysis. While monthly fees may appear manageable, the total outlay for both the handset and the SIM can far exceed the cost of buying separately.
For the new iPhone Duo, which retails at £1,999, spreading the handset cost over two years on major networks like EE or O2 results in a total payment of £2,169.36, an increase of around £170. The most substantial overpayment, however, comes from the SIM-only portion of the contract.
Monthly charges for unlimited data SIMs on a four-year contract with EE, O2, or Vodafone can reach £37, equating to over £1,000 more than comparable plans from virtual operators, which have been seen for as low as £15 a month. These contract costs are also subject to annual price increases, further inflating the long-term expense.