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.
Berkshire Hathaway CEO Warren Buffett released his 50th annual letter to shareholders. The Oracle of Omaha thinks the next 50 years will be great and knows who will replace him. More
Potential presidential candidate says that improvement in unemployment rate is due to millions of jobless not being counted. More
With the death of Leonard Nimoy, the actor who played Star Trek's Spock, we remember his character's legacy: The technology we use every day. More
A social media frenzy about the color of a dress is bringing fame and fortune for one small British fashion company. More