Want another an indication of how aggressive handset manufacturers & mobile phone operators can get? The Sony Ericsson Xperia Ray, which is a smaller version of the Arc, is now available for £25 on a 12-month contract.
That's £300 for a smartphone that's only a few weeks old, on Talk Mobile (which is a Vodafone MVNO), via Carphone Warehouse's T-Mobile and is also guaranteed to work on any other network.
Given that the phone itself costs £300 SIM Free, this offer comes with the added benefits of getting 300 minutes, 1000 texts and 1GB data, effectively making your contract free with the equivalent of a one year interest free loan.
The phone comes with a 1GHz Qualcomm Snapdragon SoC, Android 2.3 Gingerbread, a 3.3-inch WVGA capacitive touchscreen, a five megapixel rear camera, Wi-Fi, Bluetooth and a microSD card slot.
Only clearance offers on the Samsung Galaxy S, the Motorola Atrix or the HTC Desire could take away the wow value of the deal.
Sony Ericsson has also released a number of mainstream handsets recently with the Arc S, an upgraded version of the Arc, being the only high end candidate on offer.