Apple is gearing up to release its next generation smartphone aka iPhone 5, and now it is time to get rid of old stock. So to get rid of the old stock being the iPhone 3GS and iPhone 4 Target and Radio Shack has appointed slashed prices for these smartphones.

The new Target and Radio Shack price drops is surely all about the new iPhone refresh about to hit in September, Radio Shack is apparently going to cut its prices to the AT&T 16GB iPhone 4 with a new price tag of only $169.99, which is much better than the normal $199.99 giving customers a $30 saving.

The AT&T 32GB iPhone 4 will also get a price cut and will cost $269.99 normally priced at $299.99. Radio Shack will also cut the price down on the 8GB iPhone 3GS selling this at only $19.99. For more information please visit Engadget.

If you visit Phone Arena they report the latest Target price drops on the iPhone 3GS and iPhone 4, there will be new pricing structures for these smartphone.

If the source above is correct, Target will be selling the iPhone 3GS for $19.99, the AT&T and Verizon 16GB iPhone 4 for $149.99, the Verizon 32GB iPhone 4 will sell for $249.99, but the AT&T 32GB iPhone 4 will stay at the same price of $299.99, which is a little strange if you ask us.

These prices will be effective as of today according to sources, apparently Target is also going to be offering a new trade-in promotion for the iPhone 3GS, if this is correct then there will be an additional $100 off the cost of a new iPhone 4, you will be able to trade in your iPhone 3GS and pay something around $49.99 for a brand new iPhone 4.

The above price cuts is all about making room on the shelves for the new upcoming Apple iPhone 5 ready to release in September, but would you really buy an iPhone 3GS or iPhone 4 if the new smartphone is about to release?

Please do let us know if you see the above price cuts in Target and RadioShack stores, we would love to know if it all stands true. If you have anything to say on the above news please do use the commenting area provided below, are the prices given above good enough for you to purchase?

Personally we suggest holding off for a little while no matter how low the price gets, wait until somewhere around Mid-August and you will most definitely see the prices drop even more on the iPhone 3GS and iPhone 4.