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Is this the best Apple iPhone 5 contract in the UK?

The Apple iPhone 5 smartphone has been out for a few weeks now and it is interesting to note that the average price of contracts is gradually coming down, possibly because of the combined effect of a soft economy and resurging competition from the likes of Nokia and its Lumia 920 flagship handset.

Carphone Warehouse, for example, is offering possibly the best UK iPhone 5 contact we've seen to date. The tariff features unlimited minutes, unlimited texts and a 1GB data allowance that should prove more than enough for medium usage customers. The contract entails a two year commitment to O2 and will cost users £36 per month plus a negligible upfront free of £28. This is a very decent proposition given that the total cost of ownership is less than £900 and a SIM-free iPhone 5 costs a whopping £529 before you even factor in 24 months worth of usage fees.

The device sports a 4in screen featuring Apple's famed Retina display (a 1,136 x 640 pixel resolution), a new A6 system-on-a-chip which is thought to be twice as powerful as the one it replaces, 1GB of RAM, 16GB of on-board storage, a new 8-megapixel iSight camera with advanced optics, a slimmer chassis, 4G connectivity and iOS 6.

Is this the best contract in the UK for Apple’s latest smartphone? If you’re after a lot of minutes and texts but are not an overly heavy data user, then this could well be the case.