Cheapest iPhone 4S Contract In UK Drops To £30 Per Month

A sign of changing market conditions perhaps? The price of the cheapest iPhone 4S smartphone contract has slipped down to £30 a month, less if you take into account the potential cashback windfall.

The deal, available through Carphone Warehouse's Mobiles.co.uk, runs on the Three mobile network and offers the phone for free with 300 cross network minutes, 5000 texts and 500MB data.

Oddly enough, Mobiles.co.uk's offer is cheaper than going direct through the mobile network. Three also offers free Windows Live Messenger and Skype VoIP calls with all its PAYG and pay monthly contracts.

The total cost of ownership for the duration of the contract is £720 while the cost of the phone by itself currently stands at £499 SIM Free, which means that the monthly cost of the package is £9.21, less than what Three would charge on a SIM only deal.

Should you not fancy Three networks, Vodafone is also proposing a similar deal with unlimited texts for an additional £1 per month.

One has to wonder whether the increased competition in the smartphone market is forcing Apple to allow mobile networks to discount the iPhone 4S contract deeper and faster to push up sales.