Walmart is set to dramatically cut iPhone prices starting Saturday, according to Mashable, which points to an impending iPhone hardware refresh in the coming months. Walmart will reportedly slash the already low iPhone 5 cost from $189 to $129 and the iPhone 4S will go from $89 to $39 on contract with AT&T, Sprint, or Verizon (Uncarrier T-Mobile, which Walmart doesn’t support, is not included in the deal).

Walmart isn’t the only retailer jumping on the discounted iPhone wagon. Best Buy will reportedly offer substantial discounts to iPhone 4S and iPhone 5 customers offering in-store credit or credit toward the purchase of a new iPhone. Such promotions tend to hint at upcoming hardware refreshes as retailers look to move out existing inventory.

Earlier this week, leaked parts revealed the possibility of a larger battery and dual flash on the next generation iPhone, but more specific details were sparse. As we previously mentioned, the next iPhone could feature a fingerprint scanner and be joined by the long-rumored budget iPhone.

We expect new hardware to launch when iOS 7 debuts publicly later this fall.