As Apple Inc. (NASDAQ:AAPL) inches closer to releasing the highly anticipated iPhone 6, retailers will start to significantly lower the price of current iPhone models. Wal-Mart Stores, Inc. (NYSE:WMT) is the first retailer to slash the price on iPhone 5S and iPhone 5C starting tomorrow.

Apple iphone 5s

Wal-Mart to make price cuts permanent

A representative for the big box retailer added the price cuts will be permanent. The iPhone 5C will start at $29 with a two-year contract and the iPhone 5S will start at $99. The discount retailer offered a similar but brief promotion this year. The new prices changes officially take effect on Saturday morning at 9:00 am. This offer is good in-store only.

Although the reason behind Wal-Mart’s latest move isn’t known, it is highly likely the company is making room for Apple’s next generation of smartphones.

The upcoming iPhone 6 reportedly will come in two sizes including a 4.7 inch model and a 5.5 inch phablet model. The phablet is an important gadget for the company especially considering competition. Apple’s biggest rivals Samsung Electronics Co. Ltd. (LON:BC94) (KRX:0059935) and HTC Corp (TPE:2498) already dominate the phablet market. As consumer interest for larger smartphones increase, so will the demand for larger smartphones. This creates ample opportunity for Apple to seize a huge opportunity.

Possible redesign for Apple’s iPhone 6

Its predicted both versions of the iPhone 6 will feature a redesign with a thinner chassis, relocated sleep/wake button, and rounded edges. Other internal upgrades include improved communications hardware and A8 processor. If rumors indicate anything, it’s that Apple has some serious plans to seriously upgrade the next generation of smartphones. Upgrades are important for the Cupertino-based tech giant, especially if Apple wants to remain relevant.

Apple fans expect a lot from the company and given the Cupertino-based tech giant’s history of exciting upgrades, its easy to see why. Last year, Apple disappointed some fans with the release of the iPhone 5C, which was supposed to be a cheaper version of the popular phone and it certainly looked cheap thanks to the colorful plastic case.