Tesco undercuts other UK operators with £20 iPhone monthly plan

Posted:
in iPhone edited January 2014
Tesco, the largest retail store in the U.K., has announced that its base plan for the iPhone will cost just £20 ($32.54) per month, which is a third lower than competing carriers.



Tesco Mobile is a joint venture between the retail chain, which is the U.K. equivalent of Walmart, and wireless provider O2. According to the Financial Times, customers will be able to purchase an iPhone 3G at a slightly higher £222 ($361) up-front price, but with a shorter term 12-month contract.



Carrier O2 does not offer a 12-month contract, and charges £34.26 ($55.74) per month for the iPhone with a two-year contract. At that price, users can get the iPhone 3G for free.



Tesco Mobile will also offer the iPhone 3G for free with a two-year contract, but its monthly plan adds up to £702 ($1,142.15) over the 24 month span, compared with a cost of £822 ($1,337.39) with competitor O2. While both companies share the same network, O2's costlier plan will give customers 600 minutes per month, and Tesco customers will get only half that.



Unlimited calling with Tesco will run £60 ($97.62) per month with a 24-month contract. The Financial Times also noted the iPhone 3GS will cost £320 ($520.64), though it did not note whether that was the 16GB or 32GB capacity.



In November, Tesco announced they would provide the iPhone 3G and iPhone 3GS at Tesco Phone Shops in the U.K. Though products are branded Tesco Mobile, they rely on the O2 network.



The deal has been compared to Apple's introduction of the iPhone at Walmart in the U.S. The world's largest retailer began selling Apple's phone 18 months after it first debuted.



In the U.K., O2 was the exclusive provider of the iPhone until September, when it was revealed that competitors Vodafone and Orange would also offer the device.
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Comments

  • Reply 1 of 28
    Quote:
    Originally Posted by AppleInsider View Post


    Tesco...the retail chain, which is the U.K. equivalent of Walmart.



    The U.K. equivalent of Walmart would be ASDA, which is owned by...Walmart. I'm not suggesting that Tesco is Harrods, but it's no Walmart either. The Tesco Mobile phone shops which will stock the device are only found in the Tesco Extra stores, which don't quite have the same "Pile 'em high" vibe as your average Walmart.



    It's only similar in that it's the largest.
  • Reply 2 of 28
    Quote:
    Originally Posted by AppleInsider View Post


    Unlimited calling with Tesco will run £60 ($97.62) per month with a 24-month contract. The Financial Times also noted the iPhone 3GS will cost £320 ($520.64), though it did not note whether that was the 16GB or 32GB capacity.



    £320 = 16GB with £20/month * 12 months, monthly limit £60 of calls & text

    £407 = 32GB with £20/month * 12 months, monthly limit £60 of calls & text



    16GB is for free when contracted for 24 months * £60/month, unlimited

    32GB = £50 when contracted for 24 months * £60/month unlimited



    P.S. BTW unlimited WiFi (Tesco's one I presume) is indeed interesting offer...
  • Reply 3 of 28
    vinney57vinney57 Posts: 1,162member
    Ha! That's more like it.



    Tesco is not like Wallmart by the way.
  • Reply 4 of 28
    So does this still mean you can't get it outright?



    Where I am you can buy it outright from whoever you want (phone co's, Apple etc) and then pick a provider, and swap around phone companies *when* they annoy you. I wanted to buy one outright in UK, and it still seems that isn't on the list of options.
  • Reply 5 of 28
    Huh! It's the first time iPhone is gonna be sold by MVNO, I believe.

    Interesting experiment, too. (what may it change, though?)
  • Reply 6 of 28
    Quote:
    Originally Posted by stuffe View Post


    The U.K. equivalent of Walmart would be ASDA, which is owned by...Walmart. I'm not suggesting that Tesco is Harrods, but it's no Walmart either. The Tesco Mobile phone shops which will stock the device are only found in the Tesco Extra stores, which don't quite have the same "Pile 'em high" vibe as your average Walmart.



    It's only similar in that it's the largest.



    Yeah, Tesco ranks slightly more middle-class than Asda.



    I guess it goes: Lidl -> Morrisons -> Asda -> Somerfield -> Tesco -> Sainsburys -> Waitrose



    (lower class to upper class). Wal*mart is equivalent to Asda, I don't know of other US supermarkets, but you can match them up yourself from the order above.



    Asda stores are shocking. Cramped, tatty, selling tat.
  • Reply 7 of 28




    To answer a couple of notes above, yes you can just buy it (not cheap tho) and the WIFI isn't tied to Tesco, but the standard O2 stuff.



    I can't say it's any cheaper over the lifetime of a contract that anywhere else, given the higher entrance costs, but at least it's different, and for those who don't want a lengthy lock in etc it might be suitable.
  • Reply 8 of 28
    Quote:
    Originally Posted by stuffe View Post


    I can't say it's any cheaper over the lifetime of a contract that anywhere else



    It's chinese price, I dare say.

    24 month contract: 24 * 60 = 1440 (£1440!)

    12 month contract: 12 * 20 + 320 = 560 + calls/texts on flat rate
  • Reply 9 of 28
    Quote:
    Originally Posted by Hattig View Post


    Yeah, Tesco ranks slightly more middle-class than Asda.



    I guess it goes: Lidl -> Morrisons -> Asda -> Somerfield -> Tesco -> Sainsburys -> Waitrose



    (lower class to upper class). Wal*mart is equivalent to Asda, I don't know of other US supermarkets, but you can match them up yourself from the order above.



    Asda stores are shocking. Cramped, tatty, selling tat.



    Yeah, i wouldn't compare tesco to walmart. At least from what I remember of tesco when I visited the UK, tesco is much more in line with Target here in the states. More of a middle- to upper-middle class demographic than walmart. Much more pleasant shopping experience as well.
  • Reply 10 of 28
    Quote:
    Originally Posted by Hattig View Post


    Yeah, Tesco ranks slightly more middle-class than Asda.



    I guess it goes: Lidl -> Morrisons -> Asda -> Somerfield -> Tesco -> Sainsburys -> Waitrose



    (lower class to upper class). Wal*mart is equivalent to Asda, I don't know of other US supermarkets, but you can match them up yourself from the order above.



    Asda stores are shocking. Cramped, tatty, selling tat.



    I think it depends on the area, as many Asda stores are well above Somerfield ones (especially those former Kwik-Save ones that didn't receive any refresh ahead of the Co-Operative buy out).



    I would personally place the pecking order as;

    Aldi -> Lidl -> Spar (basic but expensive!) -> Co-Operative Food -> Somerfield -> Morrisons -> Asda -> Tesco -> Sainsburys -> M&S Food -> Waitrose -> John Lewis Foodhall -> Harrods Foodhall
  • Reply 11 of 28
    This is why we need more competition in the US.



    UK folks get such awesome mobile phone deals.
  • Reply 12 of 28
    MarvinMarvin Posts: 14,228moderator
    It would be nice if Apple dropped the handset price a bit by now. Given the shipments, surely they can get by with 25% margins and sell it at £280.



    Concerning Tesco, their coverage should be the same as O2 so if the Tariffs are cheaper, it's an easy choice.
  • Reply 13 of 28
    Quote:
    Originally Posted by womble2k2 View Post


    I think it depends on the area, as many Asda stores are well above Somerfield ones (especially those former Kwik-Save ones that didn't receive any refresh ahead of the Co-Operative buy out).



    I would personally place the pecking order as;

    Aldi -> Lidl -> Spar (basic but expensive!) -> Co-Operative Food -> Somerfield -> Morrisons -> Asda -> Tesco -> Sainsburys -> M&S Food -> Waitrose -> John Lewis Foodhall -> Harrods Foodhall



    What about Fortnum and Mason old boy?
  • Reply 14 of 28
    Quote:
    Originally Posted by benice View Post


    So does this still mean you can't get it outright?



    Where I am you can buy it outright from whoever you want (phone co's, Apple etc) and then pick a provider, and swap around phone companies *when* they annoy you. I wanted to buy one outright in UK, and it still seems that isn't on the list of options.



    It's possible (and always has been) to buy an iPhone off-contract (outright, unlocked, legal, no strings attached) in the UK. It's obviously expensive though:



    http://www.expansys.com/d.aspx?i=183742



    Michael.
  • Reply 15 of 28
    Quote:
    Originally Posted by Hedley Lamarr View Post


    What about Fortnum and Mason old boy?



    Or even *shudders* "Iceland" at the other end of the scale.



    Anyway, i'm sh*t at maths. I'm on O2 on the £35 tariff, is the Tesco deal a good one?
  • Reply 16 of 28
    Yeeehaaaaaa!! Oops sorry. That's fantastic news.



    My contract is up on the 4th of January and i've already instructed O2 to unlock my iPhone.



    I was going to wait until 4th gen iPhone in summer because i couldn't stomach being stuck on an 18th minimum contract when that comes out.



    But 12mths...hmm sounds very tempting.
  • Reply 17 of 28
    this deal could factor me in! will have to wait on the word from the ubber geeks (probably stuff magazine) as to how this deal really weighs up
  • Reply 18 of 28
    Quote:
    Originally Posted by Hattig View Post


    Yeah, Tesco ranks slightly more middle-class than Asda.



    I guess it goes: Lidl -> Morrisons -> Asda -> Somerfield -> Tesco -> Sainsburys -> Waitrose



    (lower class to upper class). Wal*mart is equivalent to Asda, I don't know of other US supermarkets, but you can match them up yourself from the order above.



    Asda stores are shocking. Cramped, tatty, selling tat.



    Eh?



    Asda have some of the largest, modern and well stocked stores in the UK - what are you on about ?
  • Reply 19 of 28
    stuffestuffe Posts: 391member
    Well, the ones near me are large, one of them is very modern, and they are all well stocked....with cheap tat.
  • Reply 20 of 28
    Quote:
    Originally Posted by stuffe View Post


    Well, the ones near me are large, one of them is very modern, and they are all well stocked....with cheap tat.



    I agree that Asda do sell tat but they are not unique in this - I would put Tesco at the same level as Asda personally.



    Anyway enough about supermarkets - more competition in the market is good news for iPhone customers.
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