Best Buy Serves Up Half-Off iPhone 5 Trade-In Deal

Best Buy is slashing the price of an iPhone 5 in half for customers bringing in a working iPhone 4 or iPhone 4S during a promotion this Labor Day weekend.

The retail giant's trade-in deal starts on Friday and runs through Monday, Sept. 2. Best Buy is offering "at least 50 percent off" the standard purchase price of both 16GB and 32GB iPhone 5s to customers bringing in their older models to trade in, Best Buy said.

The hitch—customers will have to sign two-year contracts with either AT&T, Sprint, or Verizon to take advantage of the deal.

Apple is expected to unveil its next iPhone on Sept. 10 with signs pointing towards Cupertino's latest smartphone being released in the U.S. on Sept. 20, so Best Buy may be getting a jump on clearing out its iPhone 5 inventory in anticipation of the next device arriving.

Customers purchasing a $199, 16GB iPhone 5 after trading in an iPhone 4 or 4S will receive a "guaranteed minimum $100 trade-in credit," dropping the price to $99. Those opting for the $299, 32GB version get at least $150 knocked off the price when they activate their new phone, meaning they'll be paying $149 for the handset.

To be eligible for the deal, an iPhone 4 or 4S "must power on, be free from water damage and screen cracks," Best Buy said.

"If a customer's iPhone 4 or 4S is worth more than the guaranteed credit, they will receive the additional amount in the form of a Best Buy gift card," the retailer added.

Interested iPhone owners can utilize Best Buy's trade-in pricing tool on the company's website to get an idea about what their phone is likely to fetch in trade-in credit from the retailer.

Customers must be eligible for an upgrade and activate the iPhone 5 on a two-year contract with AT&T, Sprint or Verizon to take advantage of this offer. The iPhone for Trade-In must power on, be free from water damage and screen cracks.

Trade-In value varies depending on the model and condition. If a customer's iPhone 4 or 4S is worth more than the guaranteed credit, they will receive the additional amount in the form of a Best Buy gift card. An online Trade-In pricing tool is available at www.bestbuy.com/tradein to help customers estimate the amount they'd receive for their eligible device. With this specific offer, a customer is guaranteed a minimum Trade-In credit of $100 for an iPhone 4 or 4S when upgrading to an iPhone 5 16GB and a minimum Trade-In credit of $150 when upgrading to an iPhone 5 32GB.

Customers can take advantage of this offer at the 1,400 Best Buy and Best Buy Mobile stores nationwide that offer Trade-In. To find local Best Buy stores that offer Trade-In, visit www.bestbuy.com/tradein. The offer is not valid online and is not valid on iPhone 5 64 GB models, T-Mobile and No Contract iPhones.

Best Buy's Labor Day deal is being honored at any of the 1,400 Best Buy and Best Buy Mobile stores in the U.S. which offer Trade-In services.