NEW YORK (CNNMoney.com) -- Amazon is currently selling all Droid phones for a penny when customers sign up for a new Verizon Wireless contract.
The deal is good for all of Verizon's (VZW) U.S. Droid phones, including the Droid X and new Droid Pro, through November 22. Customers starting new accounts will also get a $35 credit to cover the full cost of activating the phone.
Smartphone competition across all carriers seems to be sparking a race to the bottom in pricing -- a far cry from the $199 "magic price point" that's been in place so far.
Amazon (AMZN, Fortune 500) kicked off the smartphone-for-a-penny campaign back in August, when it slashed the Samsung Vibrant to 1 cent. Just last week, the site was selling two Windows 7 phones -- the HTC Surround and LG Quantum -- for 1 cent with a two-year contract from AT&T (T, Fortune 500). Last week's special also included some BlackBerry, Android and Palm models.
It's tough to beat a 1 cent deal, but that's applicable only to new accounts -- current customers are left out. Those eligible to upgrade their phones and extend their contracts can get a discounted phone -- for the Droid X, it's currently $49.99 -- but anyone not eligible for a trade-up will be paying full freight. That's $559.99 right now on Amazon for the Droid X.
A Verizon Wireless representative declined to comment on the offer, which Amazon said the company is sponsoring.
Best Buy's (BBY, Fortune 500) deal is no one-penny special, but the retailer is offering the Droid Pro for $99.99 to existing Verizon Wireless customers who sign a new two-year agreement. That's $80 off the usual price with a signed contract.
It's still relatively early in the smartphone game, and it's still an open question how low the price will go. Ultimately, the device could become merely a throw-in incentive to buy a wireless contract.
There's one smartphone that customers won't see in the bargain bin, however: The iPhone. Apple (AAPL, Fortune 500) generally doesn't allow its devices to be sold for any much less than the sticker price.
"This is my worse nightmare," wrote the CEO of AsiaAir after Flight 8501 went missing on Sunday. More
According to data from Google Trends and GrubHub, Chinese food remains the most popular type of food order on Christmas. More
With rents expected to continue to rise faster than incomes, many Millennials may finally start looking to buy homes next year. What they will find are much more favorable conditions. Here's what to expect in 2015's housing market. More