RadioShack has just confirmed that it plans to start offering a steep discount on its 16GB iPhone 4S models this weekend, following the lead of several other retailers.

Over the past few weeks, we’ve seen price drops on Apple’s latest handset from multiple outlets, including Best Buy and Walmart. And now it’s RadioShack’s turn…

The Verge is reporting that starting August 26th — that’s tomorrow — RadioShack will be offering up the entry-level iPhone 4S for just $125. The price is good for all carriers, and is the lowest we’ve seen on the smartphone (save for Sprint’s gift card deal).

In addition, the retailer will also be shaving $75 off of its 32GB and 64GB 4S models, thus knocking them down to $225 and $325 respectively. Obviously, all prices require a two-year contract, and from what we understand, they’re only available in-store.

As we’ve said before, anyone that can hold off purchasing a new handset for a month is advised to do so. Even if you’re not interested in the new iPhone, Apple is likely to discount its old ones. But if you’re in a hurry to buy, this deal is definitely worth looking into.