Apple's newly released iPhone5C is living up to the C in its name for cheap at least in Walmart. The world's largest supermarket just dropped the price of the 5C to only $45 with a two-year contract.

Even prior to this latest promo, Walmart was selling the plastic-body iPhone at $79 or $20 below the Apple suggested retail price. The drastic price reduction is part of Walmart's attempt to match is not better Best Buy promo price of $50 for the 5C.

Best Buy's promo was for the weekend only, but Walmart's cut price will last throughout the holiday season, the retailer said.

In June 2013, Walmart also gave discounts on iPhone 5 and iPhone 4S models, indicating that the Cupertino-based firm has changed its policy on discounting since Apple before severely limited the degree to which retailers can provide price cuts on its products.

The discount is not because the iPhone 5C is not selling well since it and the iPhone 5S jointly sold 9 million units on the first weekend it became available on retail outlets.

However, retailers would make more money from two-year agreements than the outright purchase of a mobile phone, which explains the heavy discounts on the initial purchase price.

Walmart sell the 5S for $189.

Also joining the price cut is RadioShack which will give customers $50 gift cards that could be used for the purchase of a 5C under a two-year contract. The RadioShack promo runs from Saturday, Oct 5 through Nov 2.

RELATED STORIES