The cheapest way to get an iPhone 4!

One provider is selling an iPhone 4 for £160 less than its cheapest rival - but which provider is it?

This week sees the launch of the heavily anticipated iPhone 4, with gadget fans up and down the country desperate to get their hands on this latest incarnation.

But what’s so great about an iPhone 4 compared to the current version?

New and improved

The iPhone 4 is thinner than its predecessor -- 24% thinner apparently -- and less curved. I saw it described on one website as ‘more grown-up’, although I’m not sure why that would make it aesthetically appealing. Fact is, it looks like an iPhone!

The all-important display screen is bigger and better than the old model. According to Apple it’s the sharpest, most vibrant, highest definition phone screen ever -- so clear that the human eye cannot distinguish individual pixels.

Plus you can now film in high definition with the souped up video, and edit your masterpiece there and then. It’s even got nifty little touches like enhanced backlighting for filming in low light and the ability to focus on the foreground or background of a shot while recording.

And its two cameras mean you can make video phonecalls to friends and family, a feature dubbed ‘FaceTime’.

One of the biggest improvements is the ability to multi-task -- using more than one app at the same time and keeping them open so you can switch easily between them. More importantly, you can do this without slowing down the performance of the app or draining the battery.

To be honest, if you’re a gadget lover, you probably don’t need to be persuaded to buy the iPhone 4. What you need to know is how to get it without breaking the bank.

The big three

Three mobile phone operators -- Orange, O2 and Vodafone -- have already announced their iPhone 4 tariffs, and the truth is they are not anything to get over-excited about. There’s very little between them, as expected.

All three are offering tariffs based on 18-month or 24-month contracts, with none at 12-months. On top of the monthly fee is the handset charge, ranging from free to £323, depending on the provider, the tariff and whether you go for the 16GB or the 32GB model.

Related goal

Spend less on your mobile

Hate receiving your mobile phone bill every month? Don’t put up and shut up – find out how to slash that bill and cut your costs!

Do this goal

The cheapest deal from the big three for the 16GB model, based on total cost, is O2’s 18-month contract at £30 a month.

This will still set you back £749 over the term (£540 for the monthly fee and £209 for the 16 GB handset).

This, of course, assumes you don’t go over your allocated minutes, texts and everything else. And, since it’s the cheapest deal, it doesn’t offer much in terms of these freebies with just 100 UK minutes a month, which won’t be enough for all but the most modest phone users.

O2 also has the lowest total cost for the 32GB model on the same £30 a month deal over 18 months --- £540 for the contract and £299 for the handset.

The cheapest monthly costs are £25 from O2 and Vodafone (both over 24 months) but, again, they offer pretty stingy free minutes (100 and 75 respectively), so are only really suitable for those who don’t make many phonecalls. Plus you will spend between £219 and £323 on the handset (the price varies depending on the provider and handset -- see tables below).

It’s also worth pointing out that, on its lower pricing bands O2 has a data cap at 500MB a month. It has argued that 97% of its customers use less than that, but the limit won’t suit everyone. For the record Orange says it offers ‘unlimited’ data but it actually has a fair usage policy in place of 750MB a month. Only Vodafone allows 1GB a month on all its tariffs, which will definitely give it the edge for many people.

Finally, bear in mind that, for the first month at least, O2 is only selling iPhone 4s to existing O2 customers. BOO hiss!

A new contender!

The only good news, is the big three networks aren’t the only iPhone 4 providers in town.

Tesco mobile is also offering iPhone 4 tariffs – and on cheap and cheerful 12 month contracts! Plus, you get triple Clubcard points for every £1 you spend on your monthly bill, and 1000 clubcard points when you sign up.

Here are the tariffs:

As you can see, Tesco blows the big three out of the water when it comes to value for money. You can get an 16GB iPhone 4 with unlimited texts, 1GB of data and 250 minutes for just £589 in total. That's £160 less than its cheapest rival (O2) and, unlike with O2 you don't need to be an existing customer and you’ll be free from your contract in just 12 months! Woo-hoo!

What about 3?

The good news is, 3 have just announced their tariffs today as well. They're offering more minutes for less money than the big three operators but you must take out a 24-month contract and commit to at least £30 a month to benefit.

If you do, you can get 500 minutes, 5,000 texts, 5,000 3-to-3 minutes and 1GB of internet surfing every month on an iPhone 4 16GB for just £30 a month, plus £99 as an upfront fee. Spread over 24 months, this works out at just £34.12 a month. That's almost £15 cheaper than the cheapest 12-month deal from Tesco mobile, and you get twice as many minutes! However, it is will cost you £230 more overall and you'll be locked into a contract for an extra year.

Another way

There is another option which could be even cheaper than any of the tariffs so far announced. You could buy the iPhone upfront from Apple for the princely sum of £499 for the 16GB version or £599 for the 32GB phone. It sounds like a lot but if you combine with a cheap SIM-only deal, you could actually end up paying less.

A SIM-only deal is where the provider sends you a SIM card to put into your new iPhone (or any other phone you want to put it in) and charges a monthly sum, which could be as little as £15 a month, offering equivalent minutes and texts to a £25 or £30 standard monthly package. It’s cheaper because you provide the phone.

Many SIM-only deals don’t tie you in so you can switch to better deals as and when they come along, plus you are free to sell your phone and upgrade to another whenever you want (and you could get more for it because it will be unlocked).

Finally, there is the option of getting your iPhone on a Pay as You Go (PAYG) deal. At the moment only Orange has announced its PAYG prices, charging £480 and £570 respectively for the 16GB and 32GB models. It does throw in 250MB of data and unlimited WiFi for 12 months, plus most of its PAYG tariffs offer generous texting allowances.

Remember though that peak time call costs can rack up with PAYG deals, so if you actually want to use your iPhone to make regular calls a monthly plan might be cheaper.

Below are the monthly iPhone 4 price plans from Orange, O2 and Vodafone:  

24-month deals

*Described as unlimited but fair usage policy of 750MB a month applies

18-month deals

*Described as unlimited but fair usage policy of 750MB a month applies

Use lovemoney.com’s resources

Adopt this goal: Lower your household bills

Watch this video: Five reasons you should choose mobile broadband