A clerk arranges Apple's iPhone 5C phones on racks bearing the logo of  China Mobile, at a mobile phone shop in Beijing December 23, 2013. Apple Inc  said it has signed a long-awaited agreement with China Mobile Ltd to sell iPhones through the world&
IN PHOTO: A clerk arranges Apple's iPhone 5C phones on racks bearing the logo of China Mobile, at a mobile phone shop in Beijing December 23, 2013. Apple Inc said it has signed a long-awaited agreement with China Mobile Ltd to sell iPhones through the world's biggest network of mobile phone users. REUTERS/Kim Kyung-Hoon

Australian retailer JB Hi-Fi is offering the cheapest iPhone 5c ever amid rumours that Apple is killing off the model. A 32GB iPhone 5c is available at only $399 until the end of the year.

As Gizmodo first reports, the budget line mobile phone has taken a price nosedive, but it’s not available online. JB Hi-Fi offers the 32GB iPhone 5c in stores only, which means it can’t be bought through the JB Hi-Fi Web site or even have it reserved online.

Also, there are only three colours to choose from – pink, yellow and green – but the yellow model has already been sold out. The white model is still at its original price of $649. Over at the Apple Web site, an 8GB iPhone 5c is sold at $529, while its more expensive brother at 32GB is $799.

There’s a catch, though. The iPhone 5c 32GB comes with Telstra prepaid, and buyers must activate the included prepaid Sim card with the handset upon purchase in store. It is limited for sale to one device per customer, and it is only available until December 31, or perhaps until supplies last.

When iPhone 5c and 5s were launched in 2013, the previous iPhone 5 model was discontinued. In September 2014, the announcement of the new iPhone 6 and iPhone 6 Plus led to the termination of the 32GB iPhone 5c models, and the 16 and 32GB models were replaced by a newer 8GB line with iOS 8. JB Hi-Fi’s 5c sale uses iOS 7.

Meanwhile, recent rumours claim that the iPhone 5c is about to be killed. Apparently, Apple supplies Foxconn and Wistron will be stopping the production of the budget smartphone now that the iPhone 6 is having stellar sales. They will discontinue the 5c around mid-2015, possibly to focus on the production on the upcoming iPhone 7, which will be released also in 2015.

Read: Apple Will Kill iPhone 5c to Make Way for iPhone 7: Killer Features to Expect