The sale price is only for activations with Verizon, Sprint and AT&T with a new two-year contract.
All Things D is reporting that the sale applies to all models, including the 4, which doesn’t makes sense because it is currently free with a two-year activation.
I checked the Best Buy site, and it looks like the sale price is already being applied to the iPhone 4S, but not yet to the 5.
According to All Things D, the sale is part of a four-week promotion, and several older Android models will also be be sale, including the Samsung Galaxy S III, HTC One X and HTC Droid DNA. Check the details, however, the Android sale prices aren’t good on all carriers.
It’s pretty obvious that a new iPhone model will be coming out soon, and this sale is just another indicator. If you don’t need bleeding-edge hardware, though, this isn’t a bad deal. I’m still using a 4S, and I’m happy with it.