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.

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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.

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