Late last week, we reported that in the wake of all the sales on iPhone models, Apple Stores would start price matching — and now it looks like even more sellers are dropping prices even further. AllThingsD has spotted two major new price drops: Target is selling the iPhone 4S for $179.99 on contract, and Best Buy will sell you an 8GB iPhone 4 for just $49.99 on a two-year contract.
All of this comes on top of other sellers also dropping the price of the older iPhone models, notably Sprint.
I think you can pretty clearly call this a fire sale, an attempt to clear out old inventory and get people onto a contract before the new hardware lands in September. All these retailers are attempting to clear out their old stock, so that they can give all their attention to the inevitable new iPhone launch.