U.S. retailers Fry's Electronics followed Walmart's footsteps and is now offering the latest iPhone 5 for just $126. The difference of just $1 between the two retailers makes Fry's deal the cheapest in the market.

Recently, U.S. retailer Walmart announced the price cut on iPhone 5 and the 16GB version is sold for $127 on a two-year contract. Similar to Walmart, customers who want to buy the iPhone 5 from Fry's will have to sign a two-year contract and the smartphone is available only in-store.

Furthermore, Fry's is also offering the 32GB and 64GB versions of the iPhone 5 for $226 and $326, respectively. The retailer is selling the smartphone in both white and black colors.

iPhone 5 launched in September this year and has taken the smartphone industry by storm. The bigger 4-inch Retina display with 1136 x 640 pixels resolution at 326 ppi, and the Multi-Touch IPS technology screen has a "Fingerprint-resistant oleophobic coating."

iPhone 5 has been selling like hot cakes globally and Apple has officially released the smartphone in around 100 countries. Recently, the release in China saw a sale of two million units in its debut weekend. iPhone 5 is definitely one of the most wanted smartphones this holiday season.

"Walmart works closely with Apple to secure some of the strongest allocations of their products. That being said, inventory is a first come first serve basis so we recommend customers come early to secure their Apple product. We will not offer rain checks but customers should know we will be refreshing our inventory on an ongoing basis," said Sarah Spencer, Walmart spokesperson. 

Looking at the deal from Fry's, it seems that Apple works closely with other retailers as well.

As time goes by, more retailers are offering the iPhone 5 at a discount. It will be interesting to see if retailers continue to offer discounts on iPhone 5 or spike the prices again after the holiday season has finished.