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.

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