How much do you pay for a new smartphone?

For the past two decades, Australians have enjoyed the option to pick up a ‘free’ phone every time they sign a new mobile phone service contract with their telco of choice. But exactly how ‘free’ are these phones we eagerly sign up for?

The answer is less and less. While it might have seemed like we were getting a free phone a while back, the cost of phones to mobile plan subscribers is on the rise, with the term “$0-upfront” a thing of the past for the top-tier of devices. Is this still the best, and cheapest, way to buy a new phone?

To figure out how much your new phone will cost you, all you need to do is look at your monthly handset repayments.

Note: In the table below, Telstra appears cheaper than its competitors, but it is important to remember that the telco's plans are typically $10 per month more expensive for the same (or comparable) inclusions.

iPhone 5s 32GB

Samsung Galaxy S5

HTC One (M8)

This actually isn’t the end of the story. We understand that telcos include a portion of the handset repayment cost in the monthly fee you pay for your plan too. If you consider that most of the telcos offer a $10-plus discount for customers who bring-their-own-phone, you can assume that about the same figure is counted towards paying off your new phone.

But this does give us an interesting glimpse into what you get in return for your loyalty to your telco — in some cases, up to about 75-percent off the RRP.

It is also interesting to see how much of a difference there is in the price of the top-shelf phones. The iPhone, Galaxy S5 and One (M8) are all pretty comparable devices, but there is a huge gap between the price of an iPhone on Optus and the price of the HTC on Vodafone.

Joseph Hanlon

Editorial Director | X | LinkedIn

Joe Hanlon has been immersed in mobile phones, plans and the internet for over a decade, having written for publications like CNET, Techradar, Gizmodo and Lifehacker. He steers the editorial ship and makes sure that we are always serving up the most useful guides and recommendations. If you ever bump into Joe on the street, don't be afraid to ask for a phone recommendation. It's embarrassing how much he enjoys talking about this stuff. He also loves listening to podcasts, so feel free to email Joe with recommendations.

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