UK mobile carrier O2 is offering a new way to get your hands on the iPhone 4S here in the UK. Rather than buying the device outright, they will lease it to you for a period of 12 months, which is available on a 16GB iPhone 4S.
You will need to pay O2 £55 a month, which includes insurance, 500MB of data per month, and 750 minutes of calls on a 12-month contract. However, you will have to hand the device back at the end of the 12 months.
O2 today announces O2 Lease, the first smartphone leasing service in the UK. Available initially through O2 retail stores and over the phone, O2 Lease enables new or existing O2 customers to lease a new smartphone for one year with no upfront payment for £55 per month including insurance, 750 minutes, unlimited text, and 500 MB of data.
Understanding the O2 Lease Program
The O2 Lease program is designed to provide flexibility and affordability for customers who prefer not to commit to a long-term purchase. By leasing the iPhone 4S, customers can enjoy the latest technology without the hefty upfront cost. This can be particularly appealing for those who like to upgrade their devices frequently. The inclusion of insurance in the monthly fee adds an extra layer of security, ensuring that any accidental damage or loss is covered.
However, it’s important to consider the long-term financial implications. At £55 per month, the total cost over 12 months amounts to £660. While this includes the benefits of insurance, data, and call minutes, you do not own the device at the end of the lease period. This contrasts with purchasing the phone outright, where you have the option to sell the device later and recoup some of your investment.
Comparing Leasing to Buying
When comparing leasing to buying, it’s essential to weigh the pros and cons. Leasing offers lower initial costs and the convenience of included services, but it lacks the long-term value of ownership. For example, if you were to buy the iPhone 4S outright, you could potentially sell it after a year for a reasonable amount, offsetting the initial purchase cost. This resale value is lost with leasing, as the device must be returned to O2.
Moreover, the data allowance of 500MB per month may be insufficient for heavy users who rely on their smartphones for streaming, browsing, and other data-intensive activities. In such cases, additional data packages would incur extra costs, further increasing the overall expense.
Have a look at our handy guide on the difference between the iPhone 4 and iPhone 4S and also the difference between the iPhone 4S and iPhone 5 to see all about the new iPhone 5.
The O2 Lease program offers a unique opportunity for those who prefer not to commit to a long-term purchase and enjoy the benefits of included services. However, it’s crucial to consider your usage needs and financial situation before deciding. For some, buying the device outright may offer better long-term value, while for others, the convenience and lower initial cost of leasing may be more appealing.
Latest Geeky Gadgets Deals
Disclosure: Some of our articles include affiliate links. If you buy something through one of these links, Geeky Gadgets may earn an affiliate commission. Learn about our Disclosure Policy.
