If you are still thinking of getting an iPhone 4, O2 has announced you can get one of them on a prepay tariff for £495 for the 16GB version. A 32GB version is also available but this will set you back £595.

If you top up £10 – £14 per month you will receive 300 free texts and 500MB Internet use. Those who spend £15 – £29 per month will receive 500 free texts and 500MB of internet.

If you go the whole hog and spend £30 prepay credit or more then O2 will provide you with unlimited free texts.

Calls on both tariffs cost 25 pence per minute for the first three minutes. Thereafter each minute of the call will cost just 5 pence.

While these deals are quite good, some commentators have noted that it is cheaper to buy the phone outright and SIM free from Apple and then order a micro SIM from O2.

Buying the iPhone outright is useful, especially if you intend keeping it a long time, but with advances in technology as rapid as they are it might be better to get one free; or at least at lower cost and on a contract.

As such, there are a number of contract deals available. For instance, an 18 month contract at £35 per month will get you up to 600 call minutes, 500 or even unlimited texts and up to 1GB internet. As for the phone, it will cost you around half the SIM free price.

iPhone 4 image courtesy of Apple