Great news for wanting owners of an iPhone. This just in from Yahoo! News. The iPhone 4 came out earlier this year, and it’s still a hot enough product that you’ll have a hard time getting it for less than $200 with a new or renewed contract. But RadioShack earlier this week announced it will be offering it for just $25.

Are there conditions? You bet there are conditions. First, you’ll obviously need to sign up for a new or renewed contract, and as with most carriers, current AT&T customers are only eligible for a phone upgrade every two years. Second, you’ll need to trade in your old iPhone to get store credit on the phone. For an iPhone 3GS in good condition you’ll get $125 in credit; for the standard iPhone 3G, you’ll get $75.

When this trade-in deal is combined with the $50 RadioShack is taking off all current iPhone models for this week only, it’s possible to get the 16GB iPhone 4 for $25. If you want the 32GB model, normally priced at $299, you can get it for $125 with the trade-in.

Now, the iPhone 3GS just came out last summer, so chances are most people who have one to trade in aren’t eligible for their two-year upgrade. Still, if you’ve got an iPhone to trade in and you’re upgrade-eligible, this is by far the best deal we’ve seen on the new iPhone.

While the trade-in deal doesn’t have an expiration date that we can see, the $50 off promotion is only good through Saturday, according to the company’s Twitter page. And since you have to trade in your phone, the deal is only available in-store. Quantities are limited and it’s an “instant rebate,” meaning the discount is taken off right away.

A well known hacker posted the first jailbreak for the iPhone 4. The hack is available at jailbreakme.com and installs a program that lets iPhone 4 owners and others purchase apps from stores other than the Apple App Store.

To start the process, visit that website using the Safari browser on an iPhone, iPad or iPod Touch. Unlike other jailbreaks, this version reportedly can be installed from the Web, without the aid of another computer. Hackers already had posted jailbreaks for previous iPhone models, but the jailbreakme.com site is the first jailbreak reported to work with Apple’s newest model of smartphone.

A hacker named Comex contributed to the update. The news of the iPhone 4 jailbreak comes just days after the process of jailbreaking phones was ruled to be legal by the U.S. Library of Congress.

After jailbreaking a phone, users can download apps that Apple has not approved for sale in its online App Store. Some of the more popular black-market apps include MyWi, which turns phones into mobile Wi-Fi hotspots, and IntelliScreen, which lets users put e-mail and calendars on their home screens.

While some iPhone 4 owners may experience problems after the jailbreak, Comex has said that he is working on those issues. Hey, people just have to be patient right? At least the jailbreak is now available and people will start enjoying more freedom rather than just be stuck with the App Store.

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