Edible Apple

Last week, Radio Shack announced an unprecedented deal on iPhones where users could deduct $50 off the cost of any iPhone 4 or 3GS model. On top of that, Radio Shack also allowed users to combine that savings with store credit derived from trading in older models.

You can pick up an 8GB iPhone 3GS for only $49 and a 16GB iPhone 4 for $199. The 32GB iPhone 4, meanwhile, is going for $249 after the Radio Shack discount.

Not only that, and in line with previous promotions, but users can trade in their old iPhone models for even more store credit to be applied to a new iPhone purchase. An iPhone 3G will net you a $75 credit while a 3GS will net you $125.

That being the case, users can pick up a 16GB iPhone 4 for only $25! ($199 – ($50+$75)) if they have an iPhone 3GS.

Now that’s as good a deal for the iPhone as we’ve seen to date, and Radio Shack’s generosity did not go unnoticed by the public at large. AppleInsider reported late last week that the nationwide retailer experienced a severe iPhone shortage as a result of its unbelievable barai.

Just days after Radio Shack began a promotion offering $50 off the iPhone, and before the sale was set to expire, many of the U.S. retail chain’s stores are sold out of their entire stock of phones.

AI contacted a number of Radio Shack stores and found that most were either completely sold outof iPhones or that they had limited supplies of very specific models.

Radio Shacks promotion, though, ended this past Saturday so regular iPhone pricing now applies to everybody once again.