Do you love your current phone or have an upgrade in mind? Imagine a world where you weren’t tied into a long-term contract, paying the same at the end of the contract as you were at the beginning for a phone that is worth much, much less.
More and more consumers are switching to the sim-only way of life, taking back control of their mobile phones, and their wallets.
We want to explore the pros and cons of making the switch, and ultimately whether it is in YOUR interests to consider the idea and what you can expect in time to come.
What is a sim-only plan?
A sim-only plan is essentially a contract that only includes the sim card, along with the inclusive minutes, data and texts that you would usually receive. The main difference is that you don’t receive a new phone with the contract, simply just the sim card and the plan to go with it.
Why would I consider a sim-only deal?
Due to the fact that you’re not receiving a phone with the contract, quite simply these are usually a lot cheaper. When a full phone contract is taken out, a portion of the monthly fee is put towards the calls, data and text allowance and the remainder is put towards the device itself. As we would expect, the contract provider wouldn’t offer this service for nothing.
You’ll often find yourself paying a lot more than you should when a full phone contract is taken out. For example, we looked at one of the leading networks in the UK, offering an iPhone 11 64GB, with unlimited data, calls and texts. The monthly cost of this was around £52 per month, with a £50 upfront payment needed. Over the course of the 2 years, the total of this equates to £1298.
When compared to the phone’s current RRP which stands at £599.99 (but even less when you buy refurbished from The iOutlet), we see this at more than double. Now of course, within the phone contract you would receive the data, minutes and texts however next we look at the value of these. If you were to obtain a sim-only plan, with the same allowance you can expect a monthly bill of just £10-£20 per month.
Still unsure?
Whilst the saving may be enough, we understand that this is a big change in our habits and some may need more convincing.
Sticking with the iPhone 11, within the first 12 months you can, unfortunately, expect it to lose 43% of its value. By the end of a standard 24-month contract, 61% will have been lost. This is the amount of time that customers are being tied into a contract with very little way out. As the phone depreciates in value, unfortunately, the contract does not decrease and will instead keep you paying the same over the full 2-year term whilst their beloved device is losing them their hard-earned money.
Keeping costs down
We wanted to find the most cost-effective way, right now, to have a top of the range phone, at the very lowest price.
We found a sim-only deal with EE including unlimited calls, unlimited texts and 10GB of data for just £10 per month.
Next up, a Fully Refurbished iPhone 11 64GB with a 12-month warranty would set you back a total of £449.99.
Combine these together and your total cost for the sim-only plan, and the phone (owned outright straight away) is just £569.99 – A total saving of £728 from the initial full contract we looked at.
Whilst we know the initial outlay for the sim-only method is higher, if we are to look at the bigger picture, the savings can easily run into the hundreds of pounds.
(You could actually save more by trading in your current device towards your new phone too!)
Given how simple it is to trade in our devices these days for cash or an upgrade, those who do own their device outright have the luxury of being able to do just this whenever they like. Having the ability to sell your device, on your terms and pay a little extra for the latest upgrade can only be a nice luxury to have, right?
So there you have it. There are a lot of choices out there, and it can be confusing and sometimes just easier to stick with what you have always been used to. For those that would like to make some dramatic savings, and gain a little freedom back, we would certainly suggest looking into your next plan being a sim-only plan.
Find more information about refurbished devices now or check the value of your current device with our trade-in service.
