RadioShack Clears Out IPhone 4, Gears Up for IPhone 5

RadioShack, which discounted the iPhone 4 last week, is reportedly slashing prices further to $170, in the latest sign retailers are clearing inventory to prepare for the iPhone 5 in the coming months.

The Fort Worth, Texas-based retailer will cut $30 off all versions of the iPhone 4, ranging from $170 for the 16-gigabyte model to $200 for the top-end 32-gigabyte device.

In addition, customers who trade-in an existing iPhone 3G or 3GS can get as much as $150 towards a new iPhone 4 purchase, bringing down the price of a new iPhone 4 to as low as $20.

RadioShack’s deal will last through August 20. The retailer, along with Target, had announced a price cut just last week.

The move comes amid speculation that Apple’s next-generation iPhone 5 will hit store shelves either in September or October. Retailers often slash prices on existing stock to clear shelf space shortly before releasing newer models.

The iPhone 5 is expected to feature a faster A5 chip, like the processor on the iPad 2, run on both GSM and CDMA networks, and offer a higher-resolution 8-megapixel camera. It will also run Apple’s iOS 5, which offers newly-improved notification system, Twitter integration and a digital newsstand service for magazines and newspapers.

Apple may also expand its speech recognition software and include a hearing aid mode.

This post originally appeared at Mobiledia.