24-month deals hidden sting in the tail

[Chris]

Been looking at getting a new phone and some of the 24-month deals look
very attractive over buying outright. But is there an expensive sting in
the tail?

For example, an iphone 14 128GB is £849 outright.

IDmobile's cheapest deal for the same model is £37.99 pm (£99 upfront
cost) which is £1010 over the 24 months. Factoring in the "value" of the
25GB mobile plan in the deal worth about £8 pm means the cost of the
phone is actually £818 (£1010 - (8*24).

Sounds like a great deal.

However, I've noticed that the annual increases that networks are
allowed to charge without triggering no-fee exit clauses apply to the
*whole deal* which means it applies to the service cost *and* phone
bundle. With the current high rates of inflation means that over two
years you may end up paying significantly more for your phone.

Cost could actually be:
Dec 22 - Mar 23 = 37.99 pm
Apr 23 - Mar 24 = 43.27 pm (CPI 10% + 3.9%) [1]
Apr 24 - Nov 24 = 46.26 pm (CPI 3% + 3.9%) [1]

Sum total = (4*37.99) + (12*43.27) + (8*46.26) + 99 = £1140

£130 more than someone might have calculated. I'll certainly be avoiding
these deals.

Sneaky tactics? Are the telcos doing these deals knowing full well
they're not as cheap as they seem?

It also doesn't seem to be a coincidence that there are no 12 or 18
month deals anymore on the main networks.

[1] CPI predictions are from NIESR:
https://www.niesr.ac.uk/blog/inflation-set-fall-early-2023

[Tweed]

Vodafone allow you to decrease the contract length downwards in one month
increments right down to 3 months. The price goes up accordingly.

If you want an iPhone buy it directly from Apple. They offer 0% credit over
24 months.

[Theo]

Chris <ithi...@gmail.com> wrote:
> Sneaky tactics? Are the telcos doing these deals knowing full well
> they're not as cheap as they seem?

Yes:
https://www.theguardian.com/technology/2022/dec/04/labour-calls-for-crackdown-on-rip-off-christmas-broadband-and-mobile-ads

[Chris]

Indeed. It seems that the phone and mobile contract are charged
separately. They are also much more expensive overall.

> If you want an iPhone buy it directly from Apple. They offer 0% credit over
> 24 months.

Which is what I did last time. The network deals this time around seemed
to be surprisingly good, until you dig deeper.

[Tweed]

The fact is, Apple don’t sell current model iPhones discounted, not even to
the mobile networks.
Vodafone sim only contracts can be got a lot cheaper if you phone them and
negotiate. Their pricing on their web pages are uncompetitive.

[Chris Green]

Chris <ithi...@gmail.com> wrote:
>
> Been looking at getting a new phone and some of the 24-month deals look
> very attractive over buying outright. But is there an expensive sting in
> the tail?
>
> For example, an iphone 14 128GB is £849 outright.
>

Which seems to me totally OTT for a mobile phone. I have a 'direct
from chinese manufacturer' Umidigi Bison, all the cameras you could
possibly want (I don't really), latest Android, no nasty manufacturer
add-ons. Price around £130. Why pay more?

... and my Umidigi has fingerprint detection, face detection, NFC,
etc. etc.

--
Chris Green
·

[Chris]

Ah, good. Thanks.

Only a week behind the curve. I've made a little webapp to investigate
this further would anyone be interested in it?

[Chris]

On 11/12/2022 09:55, Chris Green wrote:
> Chris <ithi...@gmail.com> wrote:
>>
>> Been looking at getting a new phone and some of the 24-month deals look
>> very attractive over buying outright. But is there an expensive sting in
>> the tail?
>>
>> For example, an iphone 14 128GB is £849 outright.
>>
> Which seems to me totally OTT for a mobile phone. I have a 'direct
> from chinese manufacturer' Umidigi Bison, all the cameras you could
> possibly want (I don't really), latest Android, no nasty manufacturer
> add-ons. Price around £130. Why pay more?

Consumer choice. Just like you can buy cars for under a grand or £200,000.

[Andy Burns]

Chris wrote:

> the annual increases that networks are allowed to charge

What bearing does the price of the items in the CPI shopping basket (new
additions: meat-free sausages, sports bras, pet collars and antibacterial wipes)
have on telecoms suppliers anyway?

[Tweed]

Their costs go up, wages, energy, equipment costs. What measure should they
use to form conditions of a contract? The only other realistic figure is
0%, which means they’d need to build in a best guess for inflation. I think
this is probably what some are arguing for - no price rise during contract.

[Chris Green]

Chris <ithi...@gmail.com> wrote:
> On 11/12/2022 09:55, Chris Green wrote:
> > Chris <ithi...@gmail.com> wrote:
> >>
> >> Been looking at getting a new phone and some of the 24-month deals look
> >> very attractive over buying outright. But is there an expensive sting in
> >> the tail?
> >>
> >> For example, an iphone 14 128GB is £849 outright.
> >>
> > Which seems to me totally OTT for a mobile phone. I have a 'direct
> > from chinese manufacturer' Umidigi Bison, all the cameras you could
> > possibly want (I don't really), latest Android, no nasty manufacturer
> > add-ons. Price around £130. Why pay more?
>
> Consumer choice. Just like you can buy cars for under a grand or £200,000.
>

But what are you getting for your £1000 or so?

--
Chris Green
·

[Chris]

Dunno. Ask someone who has spent that amount.

[Scott]

I think annual reviews based on CPI have been in existence for some
time now. The moral of the tale: read the small print.

[Theo]

Chris Green <c...@isbd.net> wrote:

> Chris <ithi...@gmail.com> wrote:
> >
> > For example, an iphone 14 128GB is £849 outright.
> >
> Which seems to me totally OTT for a mobile phone. I have a 'direct
> from chinese manufacturer' Umidigi Bison, all the cameras you could
> possibly want (I don't really), latest Android, no nasty manufacturer
> add-ons. Price around £130. Why pay more?

With an iPhone you get about seven years of updates and hence they last a
long time. What does yours get?

iPhone prices have gone up a lot lately due to our crap exchange rates -
in previous years it was more like £1 = $1.35, whereas the current ones were
released when £1 = $1.05. The pound has recovered a bit, but iPhone prices
don't get updated very often.

(I suspect the iPhone cameras are a lot better too, but fair enough if you
don't use them)

Theo

[Chris]

Yes and no. For ID mobile, at least, the increase being applied to the
whole bundle rather than just line rental looks new to me.

[Tweed]

ID are on the Three network, the network with possibly the worst coverage.
Every person I’ve met on a Three contract moans about coverage.

[Chris Green]

Theo <theom...@chiark.greenend.org.uk> wrote:
> Chris Green <c...@isbd.net> wrote:
> > Chris <ithi...@gmail.com> wrote:
> > >
> > > For example, an iphone 14 128GB is £849 outright.
> > >
> > Which seems to me totally OTT for a mobile phone. I have a 'direct
> > from chinese manufacturer' Umidigi Bison, all the cameras you could
> > possibly want (I don't really), latest Android, no nasty manufacturer
> > add-ons. Price around £130. Why pay more?
>
> With an iPhone you get about seven years of updates and hence they last a
> long time. What does yours get?
>

It'll last at least half that so, even if you want/need the latest
Android it'll still be a whole lot cheaper!

--
Chris Green
·

[Chris]

Here's a counter datapoint. I've been with ID for about 5 years and was
on Three previously.

I do lose coverage at times, but family members on plusnet (EE) don't
fare much better. I really can't complain for £6 pm.

[Chris]

It is odd isn't it? Why do telecoms have this 3.9% minimum uplift
guarantee when others don't?

This year it's exacerbated by the fact that almost no-one is offering 12
or 18 month contracts so customers are guaranteed to be hit twice, with
the first one in March likely to be pretty pricey.

[Mark Carver]

On 11/12/2022 15:09, Theo wrote:
> Chris Green <c...@isbd.net> wrote:
>> Chris <ithi...@gmail.com> wrote:
>>> For example, an iphone 14 128GB is £849 outright.
>>>
>> Which seems to me totally OTT for a mobile phone. I have a 'direct
>> from chinese manufacturer' Umidigi Bison, all the cameras you could
>> possibly want (I don't really), latest Android, no nasty manufacturer
>> add-ons. Price around £130. Why pay more?
> With an iPhone you get about seven years of updates and hence they last a
> long time.

Except they don't. The last three iPhones I owned the batteries were
shagged and unusable in under two years.

I've had a Huawei P20 (not my choice, my employers) for 3.5 years, I'd
say the battery is still at around 80% efficiency compared to new.
Whatever, it still easily lasts until bedtime.

[Chris]

Mark Carver <mark....@invalid.invalid> wrote:
> On 11/12/2022 15:09, Theo wrote:
>> Chris Green <c...@isbd.net> wrote:
>>> Chris <ithi...@gmail.com> wrote:
>>>> For example, an iphone 14 128GB is £849 outright.
>>>>
>>> Which seems to me totally OTT for a mobile phone. I have a 'direct
>>> from chinese manufacturer' Umidigi Bison, all the cameras you could
>>> possibly want (I don't really), latest Android, no nasty manufacturer
>>> add-ons. Price around £130. Why pay more?
>> With an iPhone you get about seven years of updates and hence they last a
>> long time.
> Except they don't. The last three iPhones I owned the batteries were
> shagged and unusable in under two years.

Mine have lasted over three years. Anecdotes for the win.

[Tweed]

Apple went through a phase of fitting not so good batteries, as I suspect
did others. Problems caused by the battery manufacturers as I vaguely
understood it. It’s why Apple would replace the battery for £25. Longevity
appears to have gone back up these days, as has the replacement cost.

[Chris in Makati]

On 11 Dec 2022 15:09:19 +0000 (GMT), Theo

<theom...@chiark.greenend.org.uk> wrote:

>iPhone prices have gone up a lot lately due to our crap exchange rates -
>in previous years it was more like £1 = $1.35, whereas the current ones were
>released when £1 = $1.05. The pound has recovered a bit, but iPhone prices
>don't get updated very often.

I think iPhone prices are only loosely related to the exchange rate.

Apple price their products in each country according to what they
believe the market there will stand.

Chris

[Theo]

Not really, because you can always import from another country. If iPhones
were cheaper in India because locals there can't afford as much, buyers would
be importing from there. Hence prices tend to align to avoid this kind of
arbitrage.

eg here:
https://www.theguardian.com/technology/2022/oct/10/iphone-14-review-apple-price-design
the price for the iPhone 14 is given as £849 / $799 / A$1399:

UK prices include 20% VAT, US prices don't:
£849/1.2 = £707 ex VAT
$799/£707 = 1.13 $/£

I think Australia prices include 10% GST, so:
A$1399/1.1 = A$1271 ex GST
$799/A$1271 = 0.629 A$/$

The midmarket rates on September 7th when they were announced (earlier than
the pound crash which was Sep 24th, about which time they were actually
available to buy) were:
1.15116 £/$
0.673 A$/$

so not too far off. Now we're at 1.225 $/£, but prices haven't been updated
to reflect that.

Theo

[Pamela]

On 09:55 11 Dec 2022, Chris Green said:

> Chris <ithi...@gmail.com> wrote:
>>
>> Been looking at getting a new phone and some of the 24-month deals
>> look very attractive over buying outright. But is there an expensive
>> sting in the tail?
>>

>> For example, an iphone 14 128GB is £849 outright.

>>
> Which seems to me totally OTT for a mobile phone. I have a 'direct
> from chinese manufacturer' Umidigi Bison, all the cameras you could
> possibly want (I don't really), latest Android, no nasty manufacturer
> add-ons. Price around £130. Why pay more?
>
> ... and my Umidigi has fingerprint detection, face detection, NFC,
> etc. etc.
>

Umidigi Bison phones from Amazon costs more than £130. This one is £290.
Is yours a more basic model?

https://www.amazon.co.uk/UMIDIGI-Smartphone-GT2/dp/B0BGWYWFQM/

[Chris Green]

I bought mine direct from China (as I said), I bought it in May 2021,
as follows:-

UMIDIGI BISON Rugged Phone 8GB 128GB 6.3'' Fingerprint ID Android 11
Quad Back Cameras 5000mAh Support 4G OTG NFC Google.

Amazon aren't particularly cheap.

--
Chris Green
·