Cheap iPhone Comparison and tips for all tariffs including iPhone 5 & 4S

The differences between the latest model of the iPhone, the 5, and its predecessor, the 4S, are pretty slim. So if you're thinking of taking the plunge and getting a new iPhone, save yourself a packet by opting for the iPhone 4S, as contract prices and PAYG handset prices have dropped dramatically.

Here's a brief summary of what's new with the iPhone 5:

• New look. Side-stepping slightly away from its traditional black and white models, Apple has labelled the iPhone 5 models as "black & slate" and "white & silver". The glass back panel of the 4S is gone, replaced by an aluminium body with new vents in the bottom and a smaller charging port. The iPhone 5 is slightly bigger than the 4S, to accommodate the large screen. And the phone itself is thinner and lighter.
• New screen. With the iPhone 5, Apple has increased the phone's screen size, from 3.5in to 4in, and upped the resolution from 960x640 to 1136x640 pixels, but kept the pixel density of the iPhone 4S at 326.
• It's faster. Apple claims that, with its new A6 chip, the iPhone 5 is up to twice as fast as its predecessor, which features an A5 chip. This means it's better at handling multiple apps and graphics, and it's more power-efficient too.
• Improved front camera. Though the rear camera of the iPhone 5 is exactly the same as that of the 4S, Apple has improved the front camera. You can use it to take self-portraits or record 720p HD video.
• FaceTime video calling. If your friends also have an iPhone 4, 4S or 5, you can video call them over wi-fi using its front camera. The iPhone 5, however, also lets you make FaceTime calls using a mobile internet connection, so you don't have to find a wi-fi hotspot to call someone.
• New charging/docking port. Because the iPhone 5 is thinner and lighter, the 30-pin connector Apple phones usually feature has been replaced with a smaller "Lightning connector". It features an all-digital, eight-signal design that Apple says "is significantly more durable than the 30-pin connector". It’s also reversible, meaning there’s no wrong way to plug the cable in.
  
  A downside of the new connector, however, is that all products you have with the 30-pin connector will become redundant with the iPhone 5 unless you purchase an adapter. These cost £25 from Apple, though are cheaper on eBay.

The only other two big differences are the iPhone 5's 4G connectivity and it's new nano-Sim - more info on both below...

When it comes to saving on contract deals, the key is to get out as early as possible, as iPhone contracts are usually more expensive than their non-iPhone counterparts.

An average user wanting 250 minutes, 250 texts and 500MB of mobile data would pay over £12 more per month for the cheapest iPhone 5 16GB deal compared to the same on the cheapest Samsung Galaxy S III deal.

So, remember these five golden rules:

1. Shorter is cheaper. Signing up for a 12-month contract often works out cheaper overall, as it gives you the freedom to switch sooner, to either a Sim-only or PAYG deal. Be aware that 12-month contracts come with a hefty upfront cost, though.

2. You can spread the cost of the handset. If you can't stump up the cash for the phone, then a longer contract means lower upfront costs. Do look at overall value though (and if you don't have the cash, should you really be getting an iPhone?)

3. Get the right tariff. Analyse how many minutes, texts and how much data you're likely to use to get the right tariff. Aim to match your usage to the free allocation. Get too much free and you're overpaying on the contract, too little and the over-quota is costly. If you're new to smartphones, expect to use much more data than before.

4. Do you need the latest iPhone? iPhone 4 and 4S prices have fallen considerably since the launch of the iPhone 5. As the iPhone 4S and 5 are similar, the iPhone 4S may be perfect for your needs, at a cheaper price.

5. Refurb or second-hand? Don't forget to check out second-hand models on eBay* and refurbished ones directly from your network. Ensure it's unlocked (see Mobile Unlocking for full info) though, so you can take advantage of super-cheap Sim-only tariffs.

Both the iPhone 5 and the iPhone 4S will now be sold as standard with iOS 6 - the latest version of Apple’s swish operating system. This means they’ll both have the same set of features, including iMessage, iCal and Siri.

So, if you've already got an iPhone 4S, it's easily upgradeable to iOS 6, meaning you needn't fork out for the new model (which isn't actually that different to its predecessor).

4G is a lightning-quick internet connection for mobile devices, which will allow you to surf the net on your phone at expected speeds of up to 20Mb. The iPhone 5 is the first iPhone model to have 4G connectivity, however, it can't be used at the moment in the UK, as no network providers offer the service as yet.

The new EE network - created by the Everything Everywhere group, which includes Orange and T-Mobile - says its 4G service will be available in "coming weeks" however, making it the first UK network to offer the high-speed mobile internet service.

So far no other providers have outlined any details of their 4G services, or when they will be offering them (if ever).

Therefore, unless you're an early adopter who must have 4G access as soon as it's available, it's probably wise to hold off switching to an EE tariff when it launches. You may find yourself locked into a long tariff that isn't the cheapest on the market.

Daring to be different, Apple went against the grain with its iPhones, designing them to take a smaller Sim card.

For the iPhone 4 and 4S (and its iPads), Apple adopted the smaller-than-standard-size micro-Sim.

Only the size is smaller though; the chip on the card remains exactly the same as that on a standard Sim, meaning those handy enough with a pair of scissors can cut a standard Sim down (as shown in TechRadar's guide) to use in an iPhone 4 or 4S, at their own risk of course.

With the launch of the iPhone 5 came the arrival of a yet smaller Sim card. Apple has sliced the edges right off the already-tiny micro-Sim, slimming it down to the new nano-Sim. Because it's a lot smaller, if you have an iPhone 4 or 4S you won’t be able to simply swap Sim cards.

If you're upgrading from another handset to the new iPhone, you could ask your network provider to exchange Sim cards, or try one of their shops, which should be carrying stocks of nano-Sims soon.

Smartphones are fast becoming the norm and if you use your phone to constantly search the web, you need to watch the amount of data you use. As more data-hungry apps are released, it's fair to question whether you'll chomp through your data allowance quickly each month and wind up paying a wedge for more.

For checking emails, looking at Facebook and watching the odd YouTube video, 500MB should be more than enough. To give you a rough idea, one of our techies, MSE Joe, has an iPhone 4 on Orange with a data allowance of 750MB/month. He doesn't use even half of this, averaging about 350MB of data a month using Spotify, Twitter, Facebook and email apps. He doesn't watch any videos, however. Downloading videos, TV shows or other web-heavy apps may take you over your limit and incur heavy charges.

If you're worried about data use, try using the free Onavo app mentioned below.

The vast majority of iPhone tariffs come with around 500MB of data a month. This is quite a lot. For example, Vodafone suggests 500MB will let you read and reply to approximately 100 emails, view 92 BBC News stories, and browse around 44 mobile web pages every day.

However, heavy downloaders who go over this could end up forking out loads in charges - especially if using your phone to surf the net while abroad (see the Data Roaming guide).

If that's you, try free iPhone app Onavo, which compresses data when web-browsing and using other apps such as Facebook and Twitter. This means the same amount of surfing will only use a fraction of your data allowance, avoiding any hefty fees.

Onavo says it can reduce data usage by 80% (we've not been able to verify this yet, but please leave your feedback in the Onavo forum discussion) and is secure as it doesn't store any of your info. It works in 90 countries, so can help minimise expensive roaming rates too.

What does it do? It can compress data for the following, meaning you use less MB:

• General web browsing
• Many apps such as Facebook, Twitter
• Maps
• Downloading emails/email attachments.

What does it not do? There are a number of things Onavo cannot compress, crucially:

• Apps or internet sites that stream content (where you watch a video or listen to music directly via a website) such as BBC iPlayer or YouTube.
• VoIP apps, which you use to make calls via the internet, such Skype or Viber, and video calling services.
• Downloading music, games or videos to buy.
• Uploading content, such as photos to Facebook.

How much does it cost? It's available free for iPhones at the moment, but Onavo says it will eventually start charging a subscription for new and existing users. This means you may have to cancel in future if you don't want to pay.

The quality of the 3G signal you'll receive will depend on where you are. Across all the networks, big cities and towns should all have a decent 3G signal, while those in rural areas can struggle.

All the networks have coverage checkers on their sites, but these tend towards optimism. Ofcom's research into 3G constitutes the most up-to-date objective info we have on coverage - view its 3G coverage map to see what signal strength will be like in your area.