Tesco launches cheapest iPhone deal

O2 say they are delighted that their 50/50 joint venture, Tesco Mobile, is now also selling the iPhone with sales having started on Monday this week.

O2 was not able to provide any sales projections at this stage, but Tesco is launching with the lowest monthly contract price in the UK market – just £20 per month on a 12 month contract.

However consumers will have to pay £222 up front – and this is not the latest model (it’s an 8GB 3G, not the 3GS).

Using this tariff, Tesco will give iPhone owners £60 in credit to spend as they choose each month.

The higher-specification 8GB 3G and the 16GB 3GS will also be available – for free with unlimited calls, texts, and browsing, on a 24 month contract, at £60 a month.