Best Buy is offering special half price discount on Apple iPhone 5C 16GB, bringing it down to $50 with a two-year contract on AT&T, Sprint or Verizon, valid through Monday, Oct. 7. But Wal-Mart has dropped the price down to $45 to undercut Best Buy's offer.

Best Buy, one of the leading retail stores in the United States, announced an attractive deal on a wide smartphone range by offering a $50 Gift Card on select models. The offer slashed the price of an Apple iPhone 5C right down to $50 with a two-year contract on AT&T, Sprint or Verizon. However, the best price guarantee was ruled over by Wal-Mart's latest offer that dropped the price of an Apple iPhone 5C to $45.

Best Buy's offer only lasts till Monday, Oct. 7, but Wal-Mart, the largest U.S. retailer, has extended the offer period lasting through the holiday season. This sure comes as a winning deal for customers looking to purchase a new Apple device this holiday season. Wal-Mart spokesperson Sarah McKinney made a statement  about the latest price drop by saying the company is "always looking for ways to surprise our customers with low prices and disrupt the competition."

Wal-Mart offered the iPhone 5C for $79 and 5S model for $189 on the launch day, making it the only retailer to offer the Apple flagships at such low prices.

On the other hand, Best Buy's $50 Gift Card can be used  to purchase other select smartphone models including the Samsung Galaxy S 4, Samsung Galaxy Note II and Samsung Galaxy S III. Unlocked versions of Samsung Galaxy S4 and Galaxy SIII also offer a $50 Gift Card, but not on Galaxy Note 3.

Apple iPhone 5C hasn't seen a favorable amount of success compared to the iPhone 5S model. Apple sold a record-setting 9-million units of iPhone 5S during the launch weekend and is in high demand.