According to an anonymous tipster, Beginning July 31, Radio Shack and Target will cut the prices of its iPhone models.

The leaked picture below, shows the following drops in prices from Radio Shack for the AT&T iPhone 4 line:

• AT&T's 16GB iPhone 4 will drop from $199.99 to $169.99, with a two-year contract.
• AT&T's 32GB iPhone 4 will drop from $299.99 to $269.99, with a two-year contract.
• AT&T's 8GB 3GS will drop to $19.99

Target is said to also be dropping prices for the iPhone models. If true, Target will offer a trade in promotion for the iPhone 3GS. If you trade in your old iPhone 3GS for a new iPhone 4 you will receive $100 towards your new iPhone 4. That means you will only pay $49.99 for a new iPhone 4 and if you're a loyal Target shopper you will be able to bring the price down another 5 percent, using your Redcard credit card.

This might be the start of more reduced prices from other iPhone sellers to push old iPhone stock out the doors and to get ready for the new iPhone 5, that is rumored to release some time this fall. We will make sure to keep you updated of any changes or new iPhone sales.

Source: Phone Arena

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Tags: apple, iphone 4, iphone, iphone 5, iphone 3gs, Radio shack, target, Price drop, Price cut, july 31, iphone models, Release, Release date, 16gb, 32gb, 8gb, trade in, 100 off