Rivals Jostle to Snap Up iPhone Users in the UK

Consumers Wanting a New iPhone Face a Wealth of Choices

Following the recent announcement of Apple’s latest iPhones, we’ve seen a sudden rash of promotions and pre-order deals from several retailers and operators in the UK.

The 3 network in particular seems keen to sign up buyers of the iPhone 6s, promoting low-cost tariffs as part of its iPhone deals. However, the UK is a fiercely competitive market, and closer examination reveals that there’s little separating rival offers.

CCS Insight tracks post-paid prices for each iPhone model on a weekly basis, including the latest variants. Here I’ve used our research to offer a snapshot of the major deals being offered for the iPhone 6s 16GB model; it’s a fascinating reflection of the competition raging in the UK market.

The table below shows the most promoted (or recommended) deals from the four UK networks and the largest independent retailer, Carphone Warehouse. All deals are for a 24-month contract with unlimited minutes and texts.

Retailer	Network	Upfront Cost	Monthly Cost	Monthly Data
EE	EE	£49.99	£49.99	4GB
O2	O2	£9.99	£54.00	20GB
3	3	£99.00	£38.00	1GB
Vodafone	Vodafone	£19.00	£54.00	8GB
Carphone Warehouse	EE	£79.99	£44.99	10GB
Carphone Warehouse	O2	£59.99	£44.00	5GB
Carphone Warehouse	Vodafone	£99.00	£39.00	6GB

Judging just by this table, it can be difficult to pinpoint the best value deal for the iPhone 6s 16GB, especially because each tariff offers a different amount of data. It suggests that for many people buying a handset on a monthly post-paid contract, the deciding factor is simply the amount of data on offer. Of course, that assessment ignores factors such as brand loyalty, network quality, customer service and other elements offered as part of a contract, such as access to third-party services.

Delving a bit deeper, I’ve looked at a range of 24-month deals offered by each operator at different levels of 4G data access. I’ve categorised them by monthly data allowance into minimum (1GB to 2GB), low (3GB to 5GB), medium (6GB to 10GB) and high (11GB and more). One tariff for each level of data allowance was selected from each of the four operators; the tariff selected was the one that in my opinion holds the best value for consumers. I’ve then calculated a total cost for the contract and, dividing that by 24, an average monthly cost.

Among the operators, 3 offers the keenest pricing in the lower tiers of the scale. Its £38 monthly tariff is among the lowest in the tariffs I’ve looked at, but it comes with an initial payment of £99 for the handset and just 1GB of data a month. For heavy data users, O2’s £49 tariff with its 20GB monthly allowance could be considered the best-value plan over a two-year period.

Tariffs from EE and Vodafone may appear high, but it’s important to consider the extras bundled with some tariffs, such as EE’s faster 4G access speeds and Vodafone’s offer of a year’s free access to Netflix, Sky Sports or Spotify.

As the chart above shows, Carphone Warehouse holds a hugely important position in the UK market. Its consistent price-matching policy means it can offer some of most keenly priced contracts on the high street. In total cost terms, it advertises the best-value tariffs for the iPhone 6s 16GB across the board. Perhaps the best value deal on offer today is its £39-a-month Vodafone tariff, which includes 6GB of data and an upfront cost of £99, making a total monthly cost of just £43.

We expect the new iPhones to energise a somewhat stagnant UK smartphone market, with competitive deals like these driving uptake. In the US, Apple’s own payment plans have added a new dimension to the business of selling smartphones (see Apple’s iPhone Instalment Plans Will Affect Carriers and Consumers). If Apple chooses to introduce similar plans to the UK, it gives consumers even more options in an already bewildering array.