O2 has upped the price of Google's anticipated LG-made Nexus 4 smartphone - for which the UK operator has a month-long exclusive - and customers have raised their eyebrows in disgust. While Google will sell the 16GB version Sim-free and unlocked for a generous £279, or an 8GB version for £239, in order to get the blower free, …
Why oh why oh why...
does anyone bother with contracts that bundle in a phone these days? It would be cheaper to borrow the dosh from the local loan-shark (or 'bank') and buy a sim-free job + suitable sim than to get many of these packages.
Re: Why oh why oh why...
If you go 24 month then yes, the price is huge.
But there are 12 month contracts around, the monthly outlay is higher but if you factor in buying the handset outright there's not much in it.
Re: Why oh why oh why...
Depends on the phone. When the iPhone 4 came out, I did the math, and it turned out that if I got an 18 month contract on 3, it was actually cheaper than buying the phone and getting the sim separately. Granted, only by £20 or so, but every little helps.
Re: There should always be a subsidy
And the subsidy can be worthwhile (though I note that O2 are being cheeky buggers in this case). You just have to do your adding up when evaluating your options. In the case of the Nexus 4, I think I'd buy straight from the Play Store at that price. Even if it ends up being more expensive over the 24 months, at least I know I'll get my OS upgrade when Google upgrades, not when the idiot carrier gets round rolling them out!
Re: There should always be a subsidy
New to Nexus huh? Welcome to the party, we don't wait for updates. No OTA? head to https://developers.google.com/android/nexus/images
I'll be avoidning O2s crappy contract
For a phone worth £279, 24mth contracts should start at £20 ... £36mth is ok for 12mths
Giff Gaff and Virgin Media
Have the best SIM only deals apparently (£12.90/£10) and only a muppet would buy a Nexus 4 on contract.
Re: Giff Gaff and Virgin Media
Kermit the frog just asked me what deals there are contract.
There are some restrictions on the SIM free deals, specifically tethering isn't allowed. But many can live with that.
I was thinking
That this will sell like hotcakes - what with it being a high spec device at a mid range price. O2 are having a laugh putting it at £36/month. Might as well get a SGS3/Note2/OneX+ for that kinda price.
The Nexus 4 is sold at cost or at a slight loss by Google so it's understandable that O2 want to make a bit of a profit...but this is pretty much daylight robbery. When will telcos realise that no one cares about them? - they are now simply just handset leasing and data pipe utility companies. O2 are amongst the worst offenders...O2 Priority? What? Get the network working properly, offer more than a measly 1Gb data per month, stop ripping people off with handsets they can get much, much cheaper elsewhere and then maybe we can talk about shopping vouchers.
Where's your evidence for this? Did you consider that maybe, just maybe, all other 'flagship' handsets are simply sold with insane margins (the most obvious example being the iPhone, of course). Maybe LG still get 10% margin on the Nexus 4 whilst selling sh!tloads more thanks to their association with the Nexus brand than the near identical Optimus G5 upon which it is based.
The pricing logic actually starts to make sense with the Nexus 4-7-10 family rather than the weird vortex of nonsense that is the iPod Touch - iPhone - iPad Mini - iPad irrationality.
The Nexus 4 is sold at cost or at a slight loss by Google
iSupply pointed ut that the margins on the nexus 7 were tight as a ducks arse on the 8GB, around $40 on the 16GB and presumably the same for the new 32GB. The margins on the Nexus 4 will be similarly tight to expand market share and develop the Google Android marketing ecosystem.
Only one thing to do avoid O2.
For the Nexus, certainly, but my HTC Sensation XE with more minutes, text messages and data than I reach costs me £23 incl VAT with O2. Not all their deals are bad.
Why havent they added access for MicroSDHC Cards yet?
Other handsets are available.
They probably want to avoid the exFAT licensing costs - keeps the handset cost down and means you aren't helping out your competitors.
Boggles the mind what they were thinking with this. A huge amount of negative publicity from such a silly mistake. My Nexus 4 will be a way to switch to a nice cheap £10 a month SIM-free deal.
Networks as a commodity - the way it should be!
Indeedy ... reading this all I could think of was ...
Don't buy a month contract .. buy a phone outright using a cashback credit card (www.aquacard.co.uk will give almost anyone a 3% cash back card), ideally through a quidco.com link and then get a cheap sim deal from Three etc.
Running a £10 giffgaff (1GB inc. tethering) monthly rolling sim only deal you will have paid off the phone against the carphone warehouse deal (£31) in 13 months that gives you a saving of £231 on a 24mth contract and frees you up to change contracts at your leisure. I no longer see any reason to get free phone deals infact i have not for the last 12mths.
Ok so you only get 250mins and 1GB but still.
O2 Rip Off
This is an O2 Rip Off. I agree with everything said. Don't forget the other network providers are just as bad but O2 really has taken the biscuit with this one. Even stupid enough to charge the same on monthly contract as more expensive phones such as the SGS3 and the HTC One X. No wonder they have to give away free TVs. Greedy and dumb O2. Good for Google.
Final nail in the coffin for outrageous 24 month contracts.
And expensive confusing tariffs. And about time too.
Stupid people see 'free' and believe it
I find it doubly funny/pathetic when you see tragic outraged blogs about someone whose 14 year old daughter dropped her 'free' iphone when scared by a dog or whatever then dad wants to cancel the contract 3 months in and telecom co refuses. Shock horror.
The price does sound bonkers: you're paying a hefty premium for spreading the purchase price over two years. It does bug me that the networks still seem to be pushing people in that direction, locking in year-plus contracts and often reserving tethering for subscription packages not sim-only/payg.
I'm about to switch too - O2 have had a few too many data outages lately; £6.90/month will get me everything I need from 3, except for tethering not being permitted. Just north of £10, Orange have a plan where it's available at an extra £1 per day - useful for me, since tethering would be a rare "emergency" usage anyway - but irritating, particularly when paying for 500 Mb already.
I'll probably go with the £6.90 and tether with my tablet instead - apparently, being a "data device" anyway, the data plan for it automatically covers tethering, even when more expensive "phone" plans don't. Bizarre.
Price isnt so bad, only £155 over buying sim free. What stinks is the 1gb for that price, should be 5gb.
Paying £5pm for 300/300/3gb, so no way am i signup up for anything that changes that deal. For new smartphone users this deal isnt so bad, but wait a month for the other carriers to jump on board, should be down to £25 in no time.
The Carphone Warehouse £31 contract does not include any data so that is utterly pointless.
Personally I'll be buying the handset SIM free and picking up a 12 months SIM only contract for £10.50 a month
All the carriers know that their business models are changing. Give it a couple of years they will be nothing more than a commoditised utility company. Data is the way. Sadly, they're still all in a semi cartel where none of them are prepared to offer truly decent data tariffs. Once one of them shows their hand, the others will follow pretty quickly though to save market share. There's no reason to not be offering 5/10/15gig tariffs right now for reasonable rates on 3G/3.5G.
Frankly, i'd forego on a calls allowance (skype will do) and texts (whatsapp etc) and just have a set data allowance per month, to use as i see fit. I can see this as the norm before the end of this decade.
As for tethering, it is practically gangster behaviour to specify how I can use my data allowance. I assume it is the operators bullying the manufacturers to build the opt out into the hardware.
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