Holiday savings starts this weekend, from this Sunday Best Buy will extend its discount 50% off for every current iPhone when purchased with a 2-year contract.

This promotion extends for about 4 weeks and the price of iPhone will slope down to just US$150. Historically speaking, iPhones do not typically see many discounts until they near the end of their life cycle when retailers try to clear old stock. But the iPhone 5 has been on sale a couple times already, as low as US$127 from a Walmart in-store promotion. It's believed that increased competition from low-cost smartphones and retailers attempting to drive traffic into stores are catalysts for these promotions.

The discount will make the 32GB model cost $250, and knock the 64GB model down to $350. The reports announced the deal ahead of it going live.

The price cut will also take off half the on-contract price of the 16GB iPhone 4S. The phone typically sells for $100 on a two-year contract, but Best Buy's discount will bring its cost down to just $50.

The discount isn't the lowest price for the iPhone 5 (Walmart once discounted it down to $127), but it is the best deal for Apple's flagship phone at the moment.

In addition to the iPhone discount, Best Buy will also offer deals on three Android phones to celebrate Memorial Day. The store will offer the HTC One X+ for free on a two-year contract, the HTC Droid DNA for $49 on contract and AT&T and Sprint models of the Galaxy S3 for $49 on a contract. The best deal is the Droid DNA, which gets a price cut of $150. The promotion cuts the price of the One X+ by $100, and the price of the Galaxy S3 by $50.