Sam’s Club is selling AT&T-locked iPhone 4’s for $147 with a two-year contract. This offer runs through Christmas day, and is the cheapest retail sale of an iPhone 4 that you will find this holiday season.

The Sam’s Club “iPhone Christmas” is part of a growing trend. Retailers everywhere seem to be discounting smartphones around this time of the year, but there hasn’t been much discount activity on Apple’s coveted iPhone.

While this Sam’s Club promotion is short, it’s still a killer deal if you’re eligible for an iPhone 4 upgrade…

The reduced upgrade price of $147 is over $50 off the full price of a basic iPhone 4. You still have to be eligible for an upgrade with AT&T, and you have to renew your two-year contract. However, if you’re ready for an upgrade from an older iPhone model, this opportunity is definitely the one to take.

Sam’s Club is also offering the 3GS for a smoking deal of only $47. That’s another $52 price cut.

If you’re eligible for an upgrade, run over to Sam’s Club by Christmas day and grab one of these discounted iPhones (before they’re all gone).

We’d love to hear your stories if you do end up getting one of these discounted phones. How did the upgrade process go at Sam’s Club? Let us know in the comments!

[via Engadget]