Forget the iPhone 5 Lite! Sony Ericsson Xperia Arc Now Costs £320 With Free Contract!

The Sony Ericsson Xperia Arc can now be purchased for as little as £25 per month on a 12 month contract with an upfront cost of £19.99, that's a total cost of ownership of £320 which is less than the present cost of the handset itself.

E2Save normally delivers SIM free/unlocked handsets with its contract purchases which means that you should be able to pop in a new SIM; the deal though - on TalkMobile - is not that bad as it includes 300 minutes, 1000 texts and 1GB of data usage.

And the Arc is a not half bad phone as well, far from it! The smartphone is actually Sony Ericsson's top of the range handset and comes with a Qualcomm Snapdragon SoC clocked at 1GHz, 512MB RAM, an eight megapixel rear camera, a 4.2-inch 854x480 pixel touchscreen, a microSD card slot, AGPS, Wi-Fi, Bluetooth, all in a chassis that weighs 117g and is only 8.9mm thick,

As expected, the Arc is powered by Android 2.3 Gingerbread and includes Sony Ericsson's proprietary user interface, Timescape.

The iPhone 5 Lite (or iPhone 4S) is likely to be a reworked version of the iPhone 4 which means that it should come with 512MB RAM and a single core A4 SoC, and could launch alongside the iPhone 5 in around a month.