The True Cost Of The iPhone. #o2fail no they don’t

Everyone is asking why are o2 in the UK ripping us off with the cost of the new iphone 3Gs compared to the US price. Well the fact is they aren’t if you work it out properly.

In the US it is being sold for the same price as last years model but in the UK it has increased. Well there are no exchange rates to deal with in the US because Apple is a US company, exchanges rates between the $ and the £ have changes a lot since last year.

Secondly it is being said that even at todays exchange rate it doesn’t compare and is more expensive than it is on AT&T in America. Well the truth is that it is actually CHEAPER in the UK. What alot of people aren’t accounting for is the contract length, o2 have a choice of 18 or 24 months, AT&T only have 24 month contract. So let’s compare like for like.

On a 24 month contract in the UK the 16GB version is £87, in the US it’s $199. At todays exchange rate $199 is £120 and that’s without even taking into account that the US price doesn’t include sales tax, the UK price does include VAT. As you can see O2 are selling it for £33 less than AT&T are.

And it’s the same for the 32GB version. On a 24 month contract it’s $299 and £175. That a saving of £6 on the US price. Not as much as 16GB version but still cheaper.

Also take into account that the £ price I used is the most you would pay, the $ price is the starting price, I have no idea what price it goes upto, AT&T list it as from $199 and from $299.

So are O2 ripping us off compared to AT&T? far from it, so much for rip off Britain.

– Post From My iPhone