There are two model/spec options for the newer Macbook Air:

So it’s an extra £500 to upgrade the processor from 1.6GHz to 1.86GHz and 120GB SATA drive to 128GB SSD drive. However, if you click to configure the cheaper £1,299 machine and take it to the same spec as the £1,799 machine it actually works out CHEAPER!

You can see from the screen shot above that to upgrade from the 1.6GhHz to the 1.86GHz costs an additional £140. To upgrade from the 120GB SATA to the 128GB SSD costs an additional £350. So when you add them both (£140+£350) you pay an extra £490 which is £10 cheaper than buying the pre-configured machine with exactly the same specifiation.

Starting with the cheaper model and upgrading the processor and hard drive takes you from £1,299 to £1,789:

But many people assume that a pre-configured bundle must be cheaper, otherwise what’s the point in having it as an alternative option, but it looks like you are paying Apple £10 to click the upgrade buttons for you because it costs £10 more:

This only seems to apply to the UK version of the Apple online store, I just checked on the US online store 

which shows the model with the faster processor and SSD as $700 more than the base model. If you configure the cheaper version to the same spec as the more expensive version:

You end up paying $200 for the processor upgrade and $500 for the upgrade to SSD so a total of $700, the same as the higher spec pre-configured model.

Obviously not content with the iPhone sales figures in the UK, O2 have announced they are changing all three iPhone tariffs to the benefit of the end user.

Those on the lowest £35 tariff get triple minutes and double SMS!
Those on the £45 tariff now get the same as the old £55 tariff, basically double mins, same SMS.
Those on the £55 tariff get dropped down to the new £45 tariff, so basically you’re saving £10 a month but you do have the option if you wish to jump up to the new £75 tariff if you really feel you need 3000 minutes!

For them to make such drastic tariff changes less than 3 months after it’s UK launch is a bold move, but definitely in the right direction. I know of 4 people who have all bought an iPhone after I’ve shown them all the features on my own device, but there are so many of my friends who would all love to get an iPhone, the cost of the handset itself doesn’t bother them, it’s the over-priced tariffs that have stopped them from taking the plunge. For the early adopters it’s a welcome break as many can now drop down a tariff and save some £££ over the course of the 18 month contract, I still wish they’d add an unlimited SMS option to the tariffs though.

The new tariffs come into effect as of today but depending on when you’re billing cycle is you may not notice the changes on your bill until mid March at the absolutle latest.

All current O2 iPhone customers should have by now received an SMS from O2 detailing the changes with a link to tell you more about it. The link varies depending on which tariff you were on, £35 link, £45 link and £55 link and includes instructions on how to easily change to a different tariff or you can simply click here and follow instructions to change tariffs.