Radio Shack is now targeting to become the largest iPhone retailer by offering iPhone 3G at the lowest possible price to date, that is, for iPhone 3G 8GB $95 with 2 year contract.

Apple Insider reports that Radio Shack will send out the promo to all its customers, essentially reaching 20 Million households across the US this weekend. Radio Shack will be putting up this offer on 3,000 of its 4,500 retail stores.

For its part in this, Radio Shack plans to promote the entire family of iPhones on the cover of its March 28 circular, at what it claims are the lowest prices ever offered for the touchscreen handset nationwide -- essentially $5 off MSRP across the board, or $95 for the 8GB iPhone 3G, $195 for the 16GB iPhone 3GS, and $295 for the 32GB iPhone 3GS.

This move will help Apple increase its sales during this low sales period of the year and essentially we see this as a strategy to take out the 3G model before the anticipated launch of 4G in coming June 2010.

Source: Apple Insider