The True Monthly Cost of iPhone Contracts - How We Calculate The Real Price

The True Monthly Cost of iPhone Deals - How We Calculate The Real Prices
Our rating: 
No votes yet

The True Monthly Cost?

The real monthly cost of an iPhone contract is not always apparent at first or even second glance which means that a cheap iPhone deal may not be all it seems.

Let us help you cut thought the fog of iPhone contract confusion

With our simple method that is easy to understand. We do all the calculations for you, so read on to see how we know the true cost of an iPhone contract and therefore which of the best iPhone deals to recommend in our reviews.

For example, Apple themselves are advertising their iPhone for only $299 in the USA. But that it clearly not the case as a 2 year contract must be purchased to buy the iPhone 6 at that low price.

So to explain our best price methodology, we use a very simple formula to know what to recommend in our reviews.

We call this the Lifetime cost of the iPhone contract

The Lifetime cost of the phone is what the iPhone will really cost, after taking into account the upfront payment, the monthly payment and any cashback or discounts offered by the network.

A discount might include an incentive like 'trade in your old iPhone' or 'Upgrade' your iPhone. Some of these discount incentives might only be available to existing customers of the Network.

We will also make that very clear in the iPhone deals reviews or recommended iPhone lists.

How Do We Calculate The True Lifetime Cost Of The iPhone Contract In Practice?

Quite simply we do some maths using the prices and details from each iPhone deal taken from our vast iPhone deal database of thousands of the best iPhone deals in the Uk.

An example of this calculation method in practice is:

  1. Length of contract = 24 months
  2. Line rental per month = £30.00
  3. Upfront cost of iPhone = £49.99
  4. Cashback = £30.00
  5. This deal is available as an Upgrade to existing customers only

To understand how much the actual contract allowance part of the deals costs, we can subtract the current Apple retail value of the iPhone.

The resulting contract cost over 2 years can then be divided by the length of the contract to result in the effective Monthly line rental.

This can be compared with a Sim Only deal of the same price to see how good a deal the Contract is or whether we recommend that It is better to buy the iPhone 6 separate from the Sim Card.

The maths would look like this for the above example:

  • (24 x £30.00) + £49.99 - £30.00 = £799.99 Lifetime cost of contract.
  • Retail cost of IPhone 6 16GB = £639.00
  • Effective cost of Line Rental over 24 Months £799.99 - £639.00 = £160.99
  • Effective Monthly cost of Line Rental £160.99/24 = £6.70 per month

Comparing The iPhone Contract With A Sim-Only Deal

If the iPhone deal in this example has the following Monthly allowances:

Voice calls = 600 mins, Texts = Unlimited, Data = 1GB

We can directly compare a Sim Only Deal with the same allowances

This gives us the best way of knowing if the deal really is a good deal or not and worthy of our Top 5 iPhone Deals list.

If the deal compares well to equivalent Sim-Only deals, then it goes striaght into our Top 5 list which we update every week. If the deals is not one of the Top 5 deals but is still a winner then it goes in our general recommendations for that particular Network.

Help Yourself To Save Money On iPhone Deals

So know you know how we like to work at iPhonesbaby! With compete transparency in this complicated world of iPhone deals.

This is why we are a trusted source of best iPhone deals and reviews. People come back to us again and again to check the value that they get for their current iPhone contract.

We say, don't delay - Start saving today!

If you are out of contract or simply looking to get a new deal. Then start saving on iPhone deals right away!

Leave a comment


Simon Kemp's picture

Rate this!: 
Your rating: 5
Save money with iPhonesbaby!

Add new comment