Apple iPhone 5 16GB deal: £27 per month with unlimited minutes

Apple is notorious for not being very good at dropping prices. But we’re finding more and more instances of affordable iPhone 5 deals especially on contracts. The device has only been out for six months but you can already grab one on O2 (via Carphone Warehouse) for as little as £27 per month with an upfront fee of £99.

That’s a total cost of ownership of only £747 and an effective monthly cost of £31.13, which is surprisingly low for what’s on offer.

The “On and On deal” includes unlimited minutes, unlimited texts and 1GB of data. You also get access to all the loyalty schemes from O2 plus unlimited Wi-Fi on the London Underground courtesy of Virgin Media.

We reviewed the Apple iPhone 5 and although there have been a number of updates compared to the iPhone 4S (including a bigger display, a higher resolution, LTE capabilities, a faster processor and better graphics), we still believe that it is far from enough.

Perhaps most importantly, it’s worth noting that a SIM Free iPhone 5 will lock to the network of the first SIM used. Current (discounted) competitors to the iPhone 5 include the Samsung Galaxy S3, the HTC One X, the Google Nexus 4 and the LG Optimus 4X.