woman examines an iPhone  -- iPhone 4 radio shackRadio Shack and the Apple Store may be at opposite ends of the spectrum when you think of buying an iPhone, but a deal this week at Radio Shack that reduces the cost of a 16GB iPhone 4 to $25 may move The Shack to the top of your list when buying electronic gadgets.

The one-week sale started Saturday and runs through Dec. 11 at Radio Shack's brick-and-mortar stores. It is not available online.

To get the $25 iPhone 4, the deal requires trading in a working iPhone 3GS for a $125 credit and taking the $50 that Radio Shack is cutting off all iPhone handsets, according to AppleInsider. The 16GB iPhone 4 typically sells for $199. The sale is for new customers to AT&T or those eligible for upgrade pricing. Radio Shack has an eligibility checker to see if you can upgrade to a new phone.Under Radio Shack's Trade & Save program, customers with a working iPhone 3G get a $75 credit, and a working iPhone 3GS is worth a $125 credit. An 8GB iPhone 3GS from Apple is $99, so the credit is more than what the phone costs to buy new today at Apple.

Combined with the instant $50 savings, trading in an iPhone 3GS brings the savings to $175 off an iPhone. That would bring the price of the $299 32GB iPhone 4 down to $125 and the $199 16GB iPhone 4 to just $25, before taxes and standard activation fees (of course).

AppleInsider points out that as part of the promotion, Radio Shack is taking a more lenient approach on iPhone trade-ins. Instead of assessing the value of the used handsets based on their physical condition, the company is expected to extend $75 credits on iPhone 3Gs and $125 credits on iPhone 3GSs as long as they are fully functional and don't have a cracked screen.

Of course, you'll still have to pay AT&T to make calls, use data and send text messages on that new iPhone, but a two-year agreement isn't much to ask for a $25 phone on a trade-in, is it?

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