iPhone 3GS Rival Alert : Nokia N8-00 From £10.50 Per Month

Carphone Warehouse is currently offering the Nokia N8 for as little as £10.50 per month on a two year contract with Vodafone, making a total cost of ownership of only £252, way less than the two-year-old iPhone 3GS.

Apart from the fact that (a) Carphone Warehouse phones are almost always unlocked and unbranded (b) this is cheaper than buying the phone on PAYG or outright (c) it means that you can pay off the phone over two years - you also get 100 minutes and 500 texts every month.

The phone though is what this contract is all about, and for someone who wants a camera phone, this is as good as it gets. The N8 comes with a stunning 12 megapixel camera with Carl Zeiss optics, records in HD and has an HDMI out for viewing images and films on a large screen.

It also comes with a 3.5-inch 640X360 pixel capacitive touchscreen, 16GB onboard storage, Dolby Surround sound compatibility, Wi-Fi, a microSD card slot, USB, Ovi Maps and Symbian^3.

It is a bit thick (13mm) and heavy (135g) but reassuringly well built and with a great design. The rest of the hardware though - from the Broadcom chipset to the fact that it has only 256MB RAM - is lower than many of its more affordable rivals.