Apple's iPhone 4 is the UK's most popular smartphone. Though the launch of the iPhone 5 is imminent and iPhone 4 prices are likely to fall when it is available, if you just can't wait until then, here's a run-down of the current cheapest deals.
The iPhone 4 isn't cheap, read the Cheap Mobiles guide for far better value tariffs.
Important!
Ensure you know how to shop safely
before trying these deals
Tips for shopping safely
Whether it's a retailer or restaurateur, airline or air-conditioner seller, computer shop or car rental company, there are always two main risks: either it's a dodgy company, or it's a legit company that has financial problems and goes bust.
The aim of these tips is to help you minimise the risks.
What happens if a company goes bust?
Quite simply, its customers are immediately transformed into creditors.
This hits hardest if you've ordered goods or tickets from them, and not had delivery, as then you are simply one of a line of people trying to get your money back out of the company's assets, and you usually get back much less than you paid in.
Even if you've had delivery, if the company you bought from goes under and there's a problem with the goods, it can mean you've no comeback.
While MoneySavingExpert.com endeavours to check deals are valid, we don't check companies' finances - even huge names like MFI and Woolies have folded - so it's very important you use the right strategies to stay protected where possible...
DO: Pay by credit card for goods over £100
Pay by credit card for something over £100, eg, flights, kitchens, sofas, and Section 75 laws super-charge your consumer rights.
Unlike debit cards, cheques & cash, pay in full or part (even just £1) on a credit card and by law the lender's jointly liable with the retailer. This means you have exactly the same rights with the card company as you do with the retailer, so if it goes bust, you can simply take your complaints there instead and get money back if no delivery.
Yet it's important you ALWAYS REPAY IN FULL each month, so there's no interest cost. See the Section 75 guide for a full guide and Cashback Credit Cards for how to earn cash on top too.
DO: Protect purchases under £100
Section 75 doesn't apply to purchases under £100, but there's still an option which can help. It's not a legal protection, just Visa rules, but it's a good secondary back up.
Spend on a Visa credit or debit card and, if the goods don't appear within 120 days, you can ask your bank to reclaim the cash from the seller's bank. See the Visa Chargeback part of the Section 75 guide for full details.
DON'T: Use unfamiliar sites without checking
Bogus websites are often set up to cash in on popular products like Ugg boots and Tiffany necklaces, so be wary if it's an unfamiliar site. And don't think that because it appears on a reputable search engine, that makes it a reputable site - always check.
DO: Check the site's legit
Most folks know to look for a security padlock on a website's bottom right, but that doesn't mean the site's legit, just that payment's secure.
To find out who registered the site and when, search the Whois database. Reputable firms should also appear on the Companies House site, the UK Govt's official companies register. Be very wary of businesses with just a PO BOX or email address.
Study the site's worldwide web ranking on Alexa. Anything in the top 100,000 means it's reasonably big - a good, though not foolproof, indication of legitimacy. Do a quick Google search for other shoppers' experiences.
DON'T: Let your anti-virus run out
Crucially, ensure your security's up-to-date - free software can be downloaded to your computer in five mins. Full details in the Free Anti-Virus Software guide.
DO: Know your distance selling rights
Many people are surprised to learn you've MORE rights buying online (or telephone/catalogue) due to the Distance Selling Regulations.
This gives a legal right to send most goods back within a week for a full refund (including outward delivery costs), even if there's no fault. You'll usually need to pay for the return delivery. Read Consumer Rights for a full guide.
However, of course this is balanced by the fact that, order online, and that automatically means a time gap between ordering and delivering - when the company has your money. So if it goes bust in that time, the distance selling rights don't help.
DO: Understand sometimes there's no protection.
Ultimately, there is always a risk that a company can go bust. If the above routes don't apply, then you have to make a decision about whether you're willing to take the risk of parting with your cash.
Don't be overly scared of this: every day we all make transactions based on trust, and this is part of that, but do balance up the amount you're spending against the risk. Don't give large amounts of money to a company you're not sure of.
Close
Contract vs. Sim-free
If you're out of contract, the biggest decision is whether to tie yourself down to a new one, or to stump up the cash for a Sim-free handset. A Sim-free phone gives more freedom; you choose a network provider without being tied into a monthly contract, but usually at a hefty upfront cost.
The "no contract" Sim-free option:
A 16GB no-contract iPhone 4 bought from the Apple store costs £510, but you can get a Sim-only contract for as little as £10/month (GiffGaff - see Sim-only deals below). Over a year, that's £630 in total, with 250 mins, unlimited texts and unlimited data each month.
It's possible to save cash on the handset by grabbing one of the networks' Pay As You Go deals. However, hidden unlocking charges can negate these savings (see PAYG deals).
Freedom - no tie in
Potential £0 monthly cost
Can upgrade or sell on whenever
Huge upfront costs
Most need a Sim-only deal on top
Steeper over longer term
The long contract option:
If you're planning to own the phone for a few years you can save on upfront costs by taking out an 18- or 24-month contract. Sign-up for 24 months and your total costs will usually be higher even than 18-month deals, as iPhone contracts tend to be more expensive than other phones' contracts per month - and you can't switch until the contract's paid. If you're not the type to haggle an upgrade and just want low upfront costs, they might be worth considering.
Lower upfront costs
Some deals get you more mins
More network perks
Long commitment - no freedom
Most expensive option overall
The halfway house: 12-month deals
The halfway house is to take a 12-month contract, currently the cheapest is offered by Tesco Mobile. While still quite steep upfront at £335, it costs £25/month for 250 mins, 5,000 texts, and 1GB of data per month. But since the contract's only 12 months, you can spread the cost (a little), while still retaining the freedom to upgrade in a year.
Good monthly prices & allowance
No need to unlock
Can upgrade phone in a year
Upfront costs still quite high
Can cost slightly more over 1 year
Contract deals: The shorter the better
When it comes to saving on contract deals, the key is to get out as early as possible, as iPhone contracts are usually more expensive than their non-iPhone counterparts. So...
Though they cost slightly more over a year, shorter contracts let you switch tocheaper deals when they end sooner.
Because of this, Tesco's £25/month contract is our overall top pick - but it isn't for everyone.
If you'd prefer to sign-up to a different network, you need more minutes, or you want to spread the cost over a longer period, our comparison tool lists all the contracts currently available to help you find the best for you; just untick the top deals box below and sort using the network provider selection buttons.
Lowest overall cost contract: Tesco Mobile
Monthly cost: £25 Upfront cost: £335 for 16GB, £426 for 32GB Contract: 12 months Tariff: 250 mins, 5000 texts, 1GB data
The key to the Tesco deal is, deal is, while it has a hefty upfront fee, the contract's cheap and you're only tied in for a year, so you're free to switch Sim and get a cheaper deal elsewhere when it ends. Do this and overall it's the cheapest solution. In many ways it's a halfway house between a Pay As You Go tariff and a contract due to the short tie-in and high upfront cost.
If you're looking for an iPhone with a low upfront cost, the cheapest deal from Three* is £99, plus £30/mth. You'll get 300 anytime, any network mins, 5,000 texts and 500MB data. Over the 24-month contract this averages £34.13/mth.
Yet until Sunday 24 July it is possible to sign up via a cashback site and get £150 cashback, which factored in over the two year contract makes it equivalent to £27.88 a month.
For this cashback, you’ll need to register, and while it usually works, never see it as guaranteed as there can be tracking issues. If you’re new to cashback sites please first read the full Cashback Sites guide for help & key warnings. If you know what you’re doing, this Quidco* link goes to the phone deal
This deal from Orange via Phones4U* is the cheapest 24-mth contract with no upfront cost. It's slightly more than the Three deal above, but you get double the minutes. Choose from either a black or white 16GB model. It's important to note the contract ties you in for 24 months, so you won't be able to switch if cheaper deals become available.
The tool only covers deals from the networks - good deals via retailers are included among those above.
As you might expect, because there's no contract attached to Pay As You Go handsets, the difference in price between those selling them is pretty slim. There's one key thing to be aware of if you're planning to grab one and switch to a Sim-only deal though: how much it'll cost to "unlock" your handset from its set network provider.
The no-hassle, get-it-now option is to buy an unlocked handset direct from Apple, either online or in one of its high street shops. Perhaps unsurprisingly, this is also one of the most costly ways, at £510. You'll then need to pick either a Pay As You Go or Sim-only deal to get up and running, see below.
Pay As You Go options by network
Stock is still limited even this long after launch (owing to the handset's worldwide popularity). As such, PAYG offers aren't as widely available as contract deals. The below is a synopsis of what is and will be available; it'll be updated as and when we get more info:
O2 - £505 for 16GB, £608 for 32GB:
Currently, O2 charges £505.53 for the 16GB, and £607.66 for the 32GB editions of the iPhone 4.
The benefit of buying here rather than direct from Apple (if you want to use O2's network) is you get 500MB of data and BT Openzone WiFi access when you top up £10 per month. Of course, this is only worthwhile if you'll use it because O2 will charge £10 to customers wishing to unlock their handset, making it more expensive overall. The process generally takes around 14 days.
Tesco Mobile - £480 for 16GB, £565 for 32GB:
Tesco Mobile will unlock a Pay As You Go iPhone for free, if you've had it activated for 12 months or longer.
Orange - £510 for 16GB, £600 for 32GB:
Orange offers a range of Pay As You Go packages, one of which (Dolphin) includes unlimited free texts, and one (Canary) including unlimited evening and weekend calls. Data users aren't so well catered for though; Orange only offers them 250MB/month for 12 months on these deals.
Orange will let customers unlock a phone for a one-off £20 charge, but they must have owned the phone for at least three months; to do it, just call customer services.
T-Mobile - £500 for 16GB:
Top-up £10 each month and the next month you'll get 100 free anytime, any network minutes plus free data for a year, with a fair usage policy of 500MB/mth.
Vodafone - £510 for 16GB, £600 for 32GB:
Top-up by £10 and you'l get 300 texts plus 500MB web access and 1GB free wi-fi.
Three - £500 for 16GB, for £600 for 32GB:
For £15 top-up a month, you'll get 300 minutes, 3000 texts and All-you-can-eat data.
Sim-only deals
For those out of contract, or with Sim-free handsets, here are the networks' best Sim-only offerings. Remember that the iPhone 4 uses a micro-Sim, so you might need to buy these in-store, online or over the phone to ensure you get one.
£10/mth: GiffGaff Sim-only (not a micro-Sim)
Our top pick for Sim-only deals, GiffGaff* offers a £10/mth Pay As You Go option with 250 anytime, any network minutes, unlimited texts and unlimited data. GiffGaff uses the O2 network, so is available in most of the UK.
It's important to note that GiffGaff does not offer a micro-Sim, so you will have to cut the Sim card down to size - read GiffGaff's guide to trimming your Sim.
Best for: Cheap data
£10.21/mth: T-Mobile Sim-only
T-Mobile's basic £10.21/mth Sim-only* gets you 300 mins and 300 texts on a 12-month contract, plus gives free internet for 12 months on a fair usage policy.
Best For: Cheap data
£15/mth: Three Sim-only
The new-to-iPhone Three* network has launched the most competitive available Pay As You Go Sim-only deal. For £15/month on a one-month rolling contract, you get 300 anytime, any network minutes, 3,000 texts and All-you-can-eat data.
Best For: Overall
From £16.50/mth: O2 Simplicity
If you've a handset locked to O2, its Sim-only Simplicity packages are worth a look. For £16.50 a month, its iPhone one-month deal gets you 100 minutes and 500 texts, and for an extra £6 per month, 500MB data.
The beauty of these packages is if you've an O2 phone you needn't unlock or change number to get them, and they'll switch you over instantly, no notice required.
Best For: O2 iPhoners
Choosing an iPhone deal Q&A;
What's the difference between an iPhone 4 and a 3GS?
There are quite a few differences between the iPhone3GS and the iPhone 4, but here are the biggies:
New look: The last two iPhones were basically identical; this one's made of toughened glass and stainless steel, and it's thinner than ever at 9.3mm.
New screen. The iPhone 4 has an IPS screen which offers four times the resolution of the 3GS's - that is, it's 4x more detailed. But Apple head honcho Steve Jobs was at pains to point out when first showing the handset off, this makes it "higher res than the human eye."
It's faster. Using Apple's A4 chip - the same as the iPad - the new iPhone's a fair bit faster than the previous version, and has double the RAM; 512MB compared to 256MB. That's twice the amount the iPad has too... This better places it to handle multiple apps at once, and it's supposed to be more power efficient too.
Better camera. Previous generations of iPhone have always been lacking in the camera department. The new one's got a 5 megapixel camera with an LED flash built in; it's not revolutionary in itself, but it'll also be possible to get an iPhone version of the iMovie editing suite and edit together HD videos on your phone.
FaceTime Video Calling. If your friends also have an iPhone 4, you'll be able to video call them over WiFi using the iPhone 4's front-facing camera. Of course, plenty of other phones have offered this capability in the past, they just didn't give it a silly name.
Gyroscope. As well as the accelerometer sported by previous models, there's a 3-axis gyroscope which will undoubtedly be used by plenty of innovative games in the near future, and possibly some more useful apps like "augmented reality".
What's a micro-Sim?
Always keen to be at the cutting edge of technology, Apple's cut the edges right off the standard Sim size, adopting a smaller, new micro-Sim (pictured right) in the iPad and iPhone 4, which for most is a bit annoying as it limits flexibility. Only the size has changed though; the chip on the card remains exactly the same as before, which means those handy enough with a pair of scissors can cut their bigger Sim into the smaller size (as shown in TechRadar's guide) and still use it, at their own risk of course.
All networks now offer the micro-Sims, but micro-Sim only deals are much thinner on the ground. Try micro-Sim deals from O2, Three and T-Mobile.
Will I get enough data to cover my usage?
As more and more data-hungry apps are released, it's fair to question whether you'll chomp through your data allowance quickly each month and wind up paying a wedge for more.
It's hard to know how much you're using, but to give you an inkling, our lead techie MSE Neil's only managed to get through 2GB of data in two years of owning an iPhone 3G; far less than he expected in that period, though he is on O2.
Here's what the major networks offer contract customers:
Vodafone: Up to 1GB/month with 24-month plans Tesco: 1GB/month fair usage O2: 50MB of data a day, free of charge or up to 1GB/month for an extra £10/month Orange: Up to 1GB/month fair usage Three: Unlimited All-you-can-eat data from £35/month T-Mobile: Up to 1GB/month fair usage
Most casual users will be easily catered for by any of the packages above, but if you know you're going to use a lot it's worth plumping for a package with more data included even at extra cost, as you'll either have to pay extra, or in some cases, get data access cut off completely.
Which network has the best 3G coverage?
Obviously it depends to an extent where you are; across all the networks big cities and towns should all have a decent 3G signal, while those in rural areas can struggle.
All the networks have coverage checkers on their sites, but these tend towards optimism. Ofcom's research into 3G at the beginning of 2009 still constitutes the most up-to-date objective info we have on coverage - view its network-by-network maps PDF.
Its conclusion put the networks in the following order overall based on outdoor coverage, though its likely Orange now has top spot, following its merge with T-Mobile:
1st: Three 2nd: Orange 3rd: T-Mobile
4th: Vodafone 5th: O2
Grab up to £100 cashback on top
Remember Quidco takes the first £5/year as an admin fee.
Three mobile: Get £150 cashback for all new iPhone contracts on Three, via Quidco*
Any network via Carphone Warehouse: Up to £100 cashback for all new iPhone contracts on Quidco*
Any network via Phones4U: Up to £70 cashback for new iPhone contracts on Quidco* (excl Vodafone iPhone 4 24-mth contracts)
Unfortunately this cash is never guaranteed, as sometimes cashback sites don't "track" deals in progress, but with headline deals like this it usually works. To find out more about how these sites can pay you, and how you can make the most of them, read the full Cashback Sites guide.
Selling your iPhone
There is a huge demand for second hand iPhones too, so it's very much a seller's market. Therefore, perhaps unsurprisingly, eBay* should be your first port of call if you're willing to put in a bit of (virtual) legwork. At the time of writing, a 16GB iPhone 3G in decent nick could fetch around £200, with 16GB 3GS models going for upwards of £230.
The Simple route:
If you want a guaranteed amount of cash to put towards your next handset (or something else entirely...), mobile recycling sites are the easiest option. To save you the hassle of going door-to-door, the following links take you straight through to our MobileValuer tool's iPhone results: just click on the model below to get the current prices from all the top payers.
* Using these links helps the site stay ad-free and free to use, as they're - affiliated links which invisibly take you via price comparison services like Moneysupermarket or affiliate sites, this then means if you end up getting a product this site gets revenue
You shouldn't notice any difference, the links don't impact the product at all and the editorial line (the things we write) is NEVER impacted by the revenue. If it isn't possible to get an affiliate link for the best product, its still listed in the same way. The following links: T-Mobile, Mobiles.co.uk, Phones4U, Vodafone, Tesco Mobile, O2, Three Mobile and Quidco are identical unaffiliated links provided for the sake of transparency. Click on the following link for more details on how this site's financed.
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This info does not constitute financial advice, always do your own research on top to ensure it's right for your specific circumstances and remember we focus on rates not service.
We don't as a general policy investigate the solvency of companies mentioned (how likely they are to go bust), but there is a risk any company can struggle and it's rarely made public until it's too late (see the section 75 guide for protection tips).
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Apple's iPhone 4 is the UK's most popular smartphone. Though the launch of the iPhone 5 is imminent and iPhone 4 prices are likely to fall when it is available, if you just can't wait until then, here's a run-down of the current cheapest deals.
Always keen to be at the cutting edge of technology, Apple's cut the edges right off the standard Sim size, adopting a smaller, new micro-Sim (pictured right) in the iPad and iPhone 4, which for most is a bit annoying as it limits flexibility. Only the size has changed though; the chip on the card remains exactly the same as before, which means those handy enough with a pair of scissors can cut their bigger Sim into the smaller size (as shown in 
