HTC has a fight on its hand after we learnt that the Samsung Galaxy S smartphone can be had for as little as £315 from a well known online retailer.
We have had several readers emailing us about the Dialaphone offer in the past and it seems that Samsung is doing whatever it takes in order to rival HTC and its armada of Android handsets.
We can confirm that the phone comes unlocked and unbranded (although that may change without notice) and that there are applications available on the Android marketplace that will do the trick.
To get the phone, users must take an 18-month contract with O2 via Dialaphone for £20 per month and downgrade to £15 per month after nine months, with an effective TCO of £315; in other words, you get 18-months free financing for the phone.
You will get 100 minutes and unlimited texts for the first nine months, downgraded to 50 minutes (with the texts) for the remainder of the contract. Consider it as a bonus rather than an add on.
Just remember to cancel any insurance that might be bundled with the deal and make sure you remember to downgrade in nine months.
Interestingly, the cheapest HTC Desire we could get on PAYG was for £400 at Play.com, a price that hasn't changed since March 2010.