The competition for the best smartphone under £200 is heating up as we approach the end of 2012 and Sony Ericsson has a second entry with the Xperia Arc S white which can be had for just £162 unlocked.
As with many such deals, it involves a well-known double loophole from O2, but with an additional step which is a little known cashback scheme from Sony Ericsson (thanks to pete1993 from Hotukdeals for the trick).
As in previous examples, the plan that is of interest to us is the O2 100 Data which provides 100 minutes, 500 texts, 500MB data and unlimited Wi-Fi access for £21.50 per month on a two year contract.
You get a £110 cashback outright when you purchase the phone; you then cancel the data bolt on from the second month onwards - saving £6 per month and downgrade the contract when reaching the 9th month, which saves an additional £5 per month.
Sony Ericsson is also giving £25 cashback to those who have purchased an Xperia arc, arc S or ray by the end of January 2012.
All this adds up to £162 and excludes any potential cashback from either Quidco or TopCashback. As always, the deal itself is not for the texts or minutes bundle but more for the phone itself which retails at more than £300.