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Samsung Galaxy S3 now available from £20.50 per month

Online retailer Mobilephonesdirect is offering the Samsung Galaxy S3 smartphone for as little as £20.50 per month on a two-year contract from T-Mobile. That’s a total cost of of ownership of £492, which is less than the device's recommended retail price when it launched just four months ago.

Three deals are available at this price with either 50 minutes, 250 texts and a 1.5GB data allowance; 100 minutes, unlimited texts and a 750MB data allowance; or 300 minutes, unlimited texts and a 250MB data allowance.

The phone is available in red, blue or white and is powered by Samsung’s quad-core Exynos 4412 SoC clocked at 1.4GHz.

There’s a massive 4.8in super AMOLED screen with a 1,280 x 720 resolution, 1GB of RAM, 50GB of cloud-based storage, 16GB of onboard storage, an 8-megapixel camera, full HD video recording and Android Ice Cream Sandwich (a Jelly Bean upgrade should be coming very soon).

Note that the actual cost of the contract is £21 per month and that you get £12 automatic cashback, reducing the price to £20.50 per month.

What explains that significant drop in price? Well, it coincides with the arrival of the Samsung Galaxy Note 2 which takes over the S3 as the flagship device. There’s also competition from the iPhone 5, which landed on 12 September.