How to (partly) avoid the O2 iPhone 3G S upgrade rip-off

So you bought the original iPhone when it was released in November 2006 and upgraded it to the 3G in July 2007 on an 18 month contract. Now you want to upgrade to the new iPhone 3G S on the 19th of June.

iPhone 3G S (32GB)
iPhone 3G S (32GB)

The problem – you’ve got six months left on your contract and O2 are going to charge you 6x £35 = £210 to get out of the contract, then £274.23 for the new 32GB iPhone and a new 18 month contract. Grand total £484.23.

A better way is to buy the new Pay & Go iPhone at £528.30, swop your old sim card into it, and sell your old 16B iPhone to MazumaMobile for £200. Grand total £338.30. A saving of £145.93.

As pointed out in this thread on Macworld UK, you’ll be able to continue your old contract until July 2010 and then be able to upgrade to the inevitable next iPhone release. O2 have confirmed to a couple of customers that your current sim card will work in a new Pay & Go iPhone.

Anything wrong with this logic?

[Update] Apparently not, as O2 confirm at the bottom of this page that your current sim card will work in a new Pay & Go iPhone.

[Update 2] Apparently yes. @rickythegeek (thanks Ricky) points out on twitter that you can sell the old iPhone to MazumaMobile whichever route you take. That brings down the price of paying off your old contract and taking out a new one to £284.23, the better deal by £54.

On further reflection I think I’ll stick with Plan A and buy a Pay & Go iPhone and continue the old contract. Although it will be £54 more expensive the contract will have expired by July 2010 making the next upgrade cheaper and easier.

3 Replies to “How to (partly) avoid the O2 iPhone 3G S upgrade rip-off”

  1. Why not go for a whole year without spending another penny on technology. You will feel better, and will be a lot richer. You will have continued to make calls and taken great photos. Protest with your credit card.

  2. I was working out the calculations too, but in consideration of my new phone. Now whilst I don’t think iPhone’s are that neccessarily better than their rivals, it is unquestionable how much of a premium price the phones can command and hold when you recycle mobile phones for cash. You can really profit from this when you are upgrading and selling an old phone in the future and surely this has to come into the process of buying or upgrading phone. I’m glad I’m not the only one with this thought!

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