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Clock is ticking: The deals are only expected to last until the end of the financial year. Photo: Reuters

Telstra, SingTel-Optus and Vodafone Hutchison Australia have slashed the price of smartphones in a last-minute grab for subscribers as the financial year comes to a close.

Credit Suisse research analyst Fraser McLeish told clients that Telstra was the first to make the move last week, cutting the price of Samsung Galaxy S5 and Apple iPhones by around $10 per month.

This can equate to $240 over the life of a two-year contract. A new Telstra customer getting a $70 per month plan will pay $7 per month to get a 32GB Apple iPhone 5s instead of $17.

"We calculate this equates to an effective price cut of 6-13 per cent depending on the plan," he said. "Vodafone and Optus have since followed."

Optus has cut prices by up to 15 per cent on some of its key plans ... Optus had previously raised handset prices at the end of April ahead of My Plan Plus."

Vodafone Hutchison Australia had offered similar reductions along with 2-3 months of free access, he added.

The moves signal a significant step up in mobile price competition and come on the heels of Optus increasing the amount of download data provided to customers, Mr McLeish said.

However, the deals are only expected to last until the end of the financial year. All three telcos are keen to sign up as many customers as possible before June 30 so that their accounts look especially healthy to shareholders when full-year results are released in late-July and August.

Telstra has already warned investors that its mobile subscriber growth, which has helped push the company's share price up, would slow down in the six months ending June 30.

"These offers won't have much impact on revenue or margins as they are only available for a short period of time," he added. "We recently reduced our Telstra and Optus mobile forecasts following the introduction of Optus' My Plan Plus, which we expect to drive an increase in pricing competition across the industry."

Vodafone Australia recently signed a deal to sell its products in the stores of consumer electronics retailer Dick Smith as part of effort to win back market share.

Telstra currently has 15.8 million mobile customers compared with the 9.43 million at Optus and the 4.96 million at Vodafone Australia.