Is Target Dropping iPhone Prices In Preparation for the iPhone 5?

As rumored, Target has dropped its iPhone prices, presumably in preparation for the incoming iPhone 5. You can even get an iPhone 4 for $5 if you trade in your old iPhone 3GS if you have the Target Red Card:

• iPhone 4 16GB black or white from all carriers at $149.99, saving $50 instantly.
• iPhone 3GS 8 GB for $19.99 from AT&T, saving $30 instantly.
• If you trade any in any working iPhone 3G you will get $100 towards the purchase of any iPhone 4.

They confirmed to Gizmodo that, if you have a Target Red Card, you can actually get the iPhone for $45. Better yet, if you give in your iPhone 3GS 32GB, you can get a 16GB iPhone 4 for less than $5 bucks. Pretty crazy. Of course, you'll have to sign up for a contract renewal.

Their deals, however, only last until August 6.