What does upfront cost mean for phones

When purchasing a mobile phone you will find a lot of different options. It\’s not just about choosing which brand, how much data you need of if you need unlimited minutes and texts. There are so many choices to help save money on your phone contact but you must understand the jargon. Here are a few explanations on what the terms mean in the mobile phone world.

Whats does upfront cost mean?

All phone plans come with either an upfront cost or no upfront cost. New models will usually require a payment upfront as a contribution to the contract plan. Older models often come with no upfront cost with many plans including add ons and cashback.

 The reason consumers have to pay an upfront cost will be due to the cost of the device. For example. The retail price of the iPhone Xs is £999 sim free. Where you can pick-up a LG V30 for as little as £495.

 Mobile phone retailers take the cost of the device into account when applying the tariff. This is why more expensive phones usually have an upfront cost.

 When a phone becomes a second generation phone it will start to feature deals that come with no upfront cost as the cost of the device is now cheaper.

Pay monthly phone plans

Buying a mobile phone on a pay monthly plan means you buy the phone on a contract plan. These plans are typically over a 24 month period. Choosing a pay monthly plan will come with several choices.

Network addons

These addons are perks that come from the network. You can choose from freebies like free Apple music, Sky sports, BT sports or even a full 24 months on NOW TV. Choosing the addon which suits you can often affect the amount of data you need to purchase.

Pay monthly data plans

A contract phone will come with a data allowance. If you’re planning on watching Sky sports, or streaming spotify all day long then a larger plan is for you. If you are constantly in reach of free WIFI then a smaller data plan can work for you.

Sim Free

For anyone looking to purchase a phone outright then the Sim Free model works for you. Every Sim Free mobile purchase will come with an upfront cost.

Which phones come with an upfront cost right now?

Below is a list of devices that mostly feature an upfront cost.

 Apple iPhone Xs

Apple iPhone Xs Max

Apple iPhone X

Samsung Galaxy S9 Plus

Samsung Galaxy Note 9

 As stated above, as of October the 15th these are all considered flagship handsets.

 Below is a list of handsets that mostly feature no upfront cost

 Apple iPhone 6

Apple iPhone 6 Plus

Apple iPhone 7

Apple iPhone 7 Plus

Apple iPhone 8

Samsung Galaxy S7

Samsung Galaxy S8

Samsung Galaxy S9

 Second generation phones can usually be purchase on several pay monthly plans with no upfront cost.