Mobile phone operator O2 and retailer Carphone Warehouse, have cut the price of the iPhone by £100, to just £169 until June 1. The offer applies to the eight gigabyte (GB) model, while the more advanced 16GB handset remains priced at £329.
Of course all new technology hits the market at an inflated price only to drop to attract new custom as interest stagnates. However, the price fall for the Apple iPhone appears particularly sudden and dramatic.
The truth behind the price cut is that there is a new Apple iPhone in the works with details of the new model likely to be released in June. So should you grab an iPhone at this reduced price or wait and see what emerges on to the market?
The pros and cons of the Apple iPhone
The main concept behind the Apple iPhone is that it combines three products into one - a mobile phone, a widescreen iPod and an internet device.
Certainly the iPhone has significant advantages over many of its competitors. The phone is easy to use thanks to its user interface which relies on simple touch to access the information you need. The impressive 3.5 inch display is striking and the Safari web browser is the most advanced on any portable device.
The shortcomings of the iPhone is that it relies on 2G technology - which is slow and wastes the unlimited data bundle that is part of the package. The space allocated is also limited - and although a 16GB version is available, it's unaffordable for most users. Plus the camera is far from being a market leader at just two-megapixels.
An upgraded version of the iPhone is expected to include 3G technology, and may also include enhanced storage space and a better camera, though details are being kept under wraps at the moment.
So should you wait for the new phone?
One of the key marketing strategies for the Apple iPhone is that it appeals to customers who want to own cutting edge technology. The iPhone was marketed as the 'next big thing' and as such it gained massive sales among customers who viewed it as sexy and sassy - an all-singing and all-dancing super phone.
Now however, that market appeal is lost as there will be a newer, upgraded version hitting the market in the near future. So if you want to be in with the in-crowd you might as well wait around.
However, if you're in the market for a new phone right now then the reduced cost of the iPhone certainly makes it appealing. Nevertheless, there are alternatives that offer arguably superior technology.
The Nokia N95, for example, betters the iPhone in a number of areas. It boasts 100Megabits (Mb) of internal memory for messages, images and ringtones as well as up to 8GB of internal flash memory for multimedia content such as pictures and music. The camera is far superior with five-megapixels, Carl Zeiss optics and a Tessar lense and it is excellent for both mobile photography and mobile video.
Certainly the N95 can't match the iPhone's user interface and operating system and doesn't have the same sleek touchscreen technology. However, you can connect much quicker with 3G technologies and sync to other compatible devices through USB 2.0, Bluetooth or Infrared making this a market leading handset in its own right.
As far as price is concerned the Nokia N95 is also significantly cheaper. The Apple iPhone will cost £169 for the handset and if you sign up to an O2 18-month contract you'll be paying an additional £35 a month with 600 minutes and 500 texts included as standard through retailer Carphone Warehouse.
By contrast, you can get the 8GB Nokia N95 for free. Vodafone, for example, is offering a free N95 handset if you sign up to its Best for Both 500 tariff for 18 months. It costs £35 a month but this includes 500 call minutes and 500 texts and line rental is half price for the first three months. Alternatively, you could get the N95 for free if you sign up to Flext 35 + web 'n' walk from T-Mobile. For £37.50 a month, you get 900 minutes or 1,800 texts or a mix of both and this includes free weekend calls and unlimited web surfing and emails. Again, you must take an 18-month contract.
The key to the right phone deal is you
With any mobile phone deal the best advice is to think about how you're going to use the phone and what your specific requirements are. Do you have a certain handset in mind that is a 'must have'? Do you want cashback? How many call minutes and texts do you require a month as part of the package?
Think about how you use your mobile phone currently and if you're happy with the service on your existing network. Many people are put off switching network provider because they don't want to change their number but you can transfer your number over to another network. This has also become much easier thanks to recent changes in regulation. Click here for more information on porting your number.
The easiest way to compare deals is using a comparison website. Moneysupermarket has recently added Phones 4 U to its list of retailers included in its listings, so we are able to offer you a choice of even more stock, more contract deals and more PAYG offers.
Have your say: Have you got an iPhone, is it worth the money? Or do you think it's just a load of hype? Visit our community forum and share your views with other members.
Disclaimer: Please note that any rates or deals mentioned in this article were available at the time of writing.
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