The cheapest way to buy the new Apple iPhone 7

Unless you've been living under a rock, you won't need me to tell you that the new Apple iPhone 7 is nearly here.

And with the success of previous iPhone models, Australian telcos are expecting a lot of people to be tossing their old phones in drawers or handing them down to kids, before rushing out to buy the shiny, new model.

More Aussies end phone contracts in September than at any other time of the year, making it the best to time score a bit of a bargain while the telcos scramble for your business.

Apple's iPhone 7 makes a pretty compelling case for your money, too.

The new model is waterproof and replaces the familiar home button with a new touch sensor. The larger Plus-sized model has two camera lenses: one for shooting in wide angle and the other for zooming in.

It comes with the latest version of Apple iOS software, which offers all the features and apps you're familiar with, plus new tools like HomeKit - an app that can control appliances around your home remotely using wi-fi.

The money-conscious should look beyond the razzle-dazzle and keep the price tag in mind, though. Some of the new iPhone 7 variants are the most expensive phones on the market, and among the most expensive smartphones yet.

To buy the iPhone 7 Plus with 256GB of storage will cost you $1569. Don't expect the telcos to offer these phones for "free" on a two-year contract.

A new iPhone 7 will cost between $10 and $30 a month on top of the monthly service fee, so your total bill will hover around $90 a month, or more.

Virgin Mobile has the best deals on launch day, followed closely by Optus and Vodafone. Telstra are also selling the new iPhone, but you'll pay for the privilege of accessing the 4GX network.

Before you buy, here are a few things to consider:

• 32GB is enough storage for most people, and you can save a lot of money by not being upsold to the 128GB or 256GB models.
• Have a good idea of how much data you need in your plan. The telcos will try to lure you to a higher-cost plan with more data but you should resist the temptation if you won't use it.
• If you're going to buy an iPhone 7, do it now. We've looked into this with previous iPhone models and the cheapest price is always available on launch day, with the telcos slowly raising the monthly handset repayment over the next 12 months until the new model comes out.

Apple's outright prices

iPhone 7 32GB with 5GB (one from each carrier)

iPhone 7 Plus 32GB

Get stories like this in our newsletters.