A couple weeks after dropping the price of the iPhone 4S to $149, Sprint has further slashed the price to $49 after a mail-in rebate for a $100 American Express gift card. Apple will price-match Sprint's offer, giving buyers in retail stores a $100 Apple Store gift card. All these purchases require agreeing to a new two-year contract.
This may be the lowest price for the iPhone 4S yet in the U.S., less than a month ahead of the rumored launch of the next iPhone. Sprint is being particularly aggressive moving the soon-to-be out-of-date iPhones -- perhaps because Sprint has "bet the company" on the iPhone, agreeing to pre-purchase agreements for millions of iPhones.
Update: Sprint has reached out to MacRumors with clarification on the promotion. The ad is an online web special, for new customers only, and is in place for all smartphones, not just the iPhone. The promotion is in place to drive traffic and purchases through Sprint's website.