Sprint dropped iPhone 4S price by $50, fueling the rumors that Apple is preparing to launch its next iPhone.

The carrier placed a promotion on its home page quoting $149 for the 16GB 4S, which is $50 lower than earlier prices. Sprint also waived its $36 activation fee for online orders. Higher storage models, the iPhone 4S 32GB and iPhone 4S 64GB, also received the same $50 price drop. Sprint now sells iPhone 32GB for $249 and iPhone 4S 64GB for $349.

The price drop seems logical as the release of the iPhone 5 is reportedly just around the corner. Even last year, retailers slashed iPhone 4 prices two months in advance of the iPhone 4S debut. The tech giant Apple may unveil its next generation smartphone on September 12, according to an earlier report. Sprint might be clearing out its iPhone 4S stock before the next generation iPhone arrives.

Sprint is the first to cut iPhone 4S prices, with other carriers expected to follow suit in the coming weeks. Verizon Wireless and AT&T still quote $199 for the 16GB iPhone 4S.

The next iPhone is likely to arrive within the next two months. It appears likely to feature a larger 4-inch display. With the new iPad coming in LTE models, it is virtually confirmed that iPhone 5 will pack LTE radios too. New processor chips will add some extra horsepower. NFC mobile payment rumors are also hitting an all-time high.