The iPhone 7 is available to pre-order now and will be on sale at the end of this week and the price is a little overwhelming when you consider the total cost. This is why so many people are happy to sign up to contracts so the “cost” becomes a monthly question not a two-year cost. We’ve crunched the numbers and can tell you there are big bucks to be saved by shopping around.

So here’s the thing, buying an iPhone outright isn’t cheap. The iPhone 7 starts at $1,079 while the iPhone 7 Plus starts at $1,269. The biggest cost is the 256GB version of the iPhone 7 Plus at $1,569.

Those prices make $80 or $100 a month seem like nothing!

The truth is, those 24 month contract plans range in total price from $1,632 up to $4,680!

Here’s why you should consider buying your phone outright from a retailer or Apple and finding a monthly SIM deal to suit you. That $1,632 total cost over 24 months? That’s an iPhone 7, 32GB version on Optus with 1GB of data per month.


Now, yes there are some benefits to that Optus plan (Netflix & Presto streamed data free, Streaming music data free), but at its heart, it’s a 1GB plan. If you buy that phone from Apple at $1,079 there’s another $553 to spend on “access”. That’s $23.04 a month.


Kogan Mobile’s $16.95 unlimited call and text plan has 1GB of data. Over two years, you’d save $146.20 owning the iPhone this way. Plus, you’d have the flexibility through those 24 months to swap carriers as you like if a better deal comes up (which they always do!).

At the extreme end, the Telstra $128 a month deal for an iPhone 7 Plus 256GB model with 10GB of data per month will cost $3,072 over the two years. Buy the phone and you’ve got $62 a month to find a telco deal with. Amaysim could do that at $59.90, Kogan Mobile for $49.90. A Saving between $65 and $305 over the two years.


Now – to be clear, there are plans that are better on a contract. For example, Optus’ iPhone 7 32GB with 3.5GB of data is cheaper on an Optus deal than the low-cost carriers and an outright phone purchase by between $68 and $140 over the two years.

Likewise, Vodafone’s iPhone 7 32GB phone on a 9GB data plan is cheaper than SIM Only low-cost telco by $69 over the two years.


So, there are occasions when the Telco contract is better. But for any user on less than 11GB of data per month, in 90% of cases, it’s cheaper to buy the phone outright and go on a month to month plan with a low-cost telco than it is to be on that contract.

The most important benefit of not being on a contract? Shopping around month to month for a good deal and more inclusions.

Each of the big Telcos are now offering serious incentives to be on a contract. If those streaming service deals are important to you – take the time to calculate the cost of ownership over 24 months before you commit, you might just have some extra pocket money if you take the time to check.