iPhone 4S Rival Alert : Samsung Galaxy S2 From £278?

Another hint that manufacturers and mobile phone carriers are clearing their existing stocks of the Samsung Galaxy S2? Well, you can apparently buy the phone from Dialaphone for as little as £278 which represents a saving of almost £100 compared to the cheapest SIM Free version of the handset.

The technique is slightly convoluted, but its worth it. Going through a cashback website like Quidco or Topcashback to access Dialaphone will earn you £50 outright. Then select the O2 100 Data price plan which carries a recommended cost of £21.50 per month on a two year contract with an initial fee of £9.99 for the phone.

Immediately cancel the 500MB internet bolt on (and unlimited Wi-Fi) to save £6 per month. You will pay £21.50 for the first month nonetheless and £15.50 for the next 11 months. After the first year, downgrade to the lowest tariff which should save you another £5.

Don't forget to cancel the gadget helpline and phone insurance options and bear in mind that O2 may decide to up the price of its cheapest contract.

The phone is likely to be unlocked and unbranded; rather than a contract, it can be viewed as a no-interest, 24 month loan to buy a phone that still has a lot of give.