A finance blogger has accused the mobile network operator O2 of ripping off customers over the prices of its iPhone 6 devices. He says that when you buy your mobile phone upfront from the telecommunications provider it could be costing you a lot more than it would to go straight to Apple.
Andy Webb, who runs a money saving advice site called Be Clever With Your Cash, looked up the O2 tariffs for an iPhone 6 if one wished to buy the phone upfront. This is a common choice by people wish to save money by using a cheap SIM only deal. What he discovered was that customers would have to spend £90 more to buy the device from O2 than it would an Apple store.
Mr. Webb said that it doesn’t make sense for O2 to do this for any other reason than to exploit their customers. He said that you naturally pay more when you get a contract because you are essentially borrowing money to pay it off, therefore the additional cost is seen as something akin to interest. However, if you are not paying anything off, he wonders where the extra £90 charge comes from.
One example is the 16gb iPhone 6 which O2 are charging £629.99 for alongside £17.50 per month for a deal that gives you a small 1gb data allowance. Meanwhile, the Apple store is selling the iPhone 6 for just £539 – just under £91 cheaper than it is from O2. All you have to do is find a good SIM only deal to customise it with and you are essentially good to go.
So what does O2 have to say about this? A spokesman for the company didn’t deny that their prices are significantly higher and confirmed that the manufacturer could have a lower price. However, he explained that customers at O2 will benefit from the O2 Refresh scheme when they purchase from O2. This is where you trade in your phone when you want a new one.
If you are looking to buy a brand new iPhone 6 upfront it would be a wise decision to avoid O2, it seems. Customers will be able to save money by going directly to the supplier, visiting the Apple web page or dropping into the company’s nearest store.