Up until last week, if you wanted an iPhone then the only way to go about it was through O2. And even though O2 has just announced cheaper deals where customers can get the iPhone for free on longer contracts, a new option has arrived on the market from Play.com.

The online company has just announced that it will be offering the iPhone on a SIM-free basis, meaning customers will not have to sign up to a hefty contract with O2 in order to get all the benefits of the revolutionary phone.

This caused a few ripples through the industry, and many people were quick to question the legitimacy of the deal. However, Play.com has assured its customers that anyone who buys an iPhone from the company will be covered by Apple’s warranty. Indeed, the company actively encourages its customers to sign up on the Apple website after purchasing one.

It wasn’t long ago that Apple was threatening to block iPhones that were unlocked by their owners, and that any that were would not be covered by the warranty. However, Play.com says that the move has been possible due to “EU legislation ensuring the sale of SIM-free mobile phones”.

It’s all great news for those who are looking for a bit more choice, but it will of course come at a cost. The 8GB version is selling for £549.99, and the 16GB is currently selling for £599.99, although this could well go up in the near future. This is still cheaper than taking out a two-year contract with O2, but then you have to factor in money spent on a different contract as well.

And with rumours circulating that a new iPhone model will be released this summer, do you really want to splash out a small fortune on something that is sure to go down in value on the announcement of any new models?