If you have been looking for a deal on an iPhone this holiday season, no doubt you have been disappointed as they have been few and far between. Other than the slightly discounted refurbished units, and other inventory that tout “cosmetic damage” on the AT&T website, the pickins’ are pretty slim. It seems as if retail pricing will be the only way to go to surprise your loved one with an iPhone under the tree.

But wait! What before my eyes do appear, but a store called Radio Shack with some iPhone deals. Ok. let’s get down to business and put the story telling tone to bed. Radio Shack has announced a very limited iPhone sale consisting of instant radio-shack-iphone-4rebates and iPhone trade-in’s. This is unprecedented so pay attention, and if it seems like you’ll be in the iPhone market in the near future, this is the offer to jump on.

Radio Shack is knocking $50 off all iPhone handsets combined with trade-in incentives you could walk out of the store with an iPhone 4 for as little as $25.

This one week only sale , December 4th, 2010 through December 11th, 2010, cuts $50 off all iPhone models, which means new or upgrade eligible customers can purchase an iPhone 3GS for $50, 16GB iPhone 4 for $150 or a 32GB iPhone 4 for $250.

If that discount wasn’t enough, Radio Shack is also instituting their Trade & Save, program, which offers customers a $75 credit towards the purchase of a new phone when they trade in a working iPhone 3G or $125 credit when they trade in a working iPhone 3GS. Keep in mind not only do the trade-ins need to be working, but the screens can’t be cracked either.

These credits, when combined with the $50 instant savings means customers who trade in a 3GS can save $175 off the cost of a new Apple handset. This brings the cost of a 32GB iPhone 4 to $125 and a 16GB iPhone 4 to a very affordable $25. Of course you will need to add applicable taxes on the retail price and that pesky activation fee.

These offers are only available at Radio Shack brick and mortar stores and are not available online.  You can learn more about the Trade & Save Program and to check your Upgrade Eligibility click the appropriate link. keep in ind these offers expire Saturday, December 11th, 2010 and you never know when they may show their face again.

What do you think of buying an Apple handset at Radio Shack as opposed to grabbing one from AT&T or Apple? Considering if you sell your 3G or 3GS for more than the trade-in program affords you do you think the difference is worth the convenience of not having to find a buyer?