Psst! Apple Retail Stores Now Secretly Price Matching iPhone Discounts
There is a limit. According to the source who revealed the secret policy and internal screenshot to MacRumors, Apple is willing to knock up to $49.01 off the price of an iPhone, and not a penny more. Don't expect Apple employees to bring it up, either. You'll have to request the discount, and likely name your source; maybe even show proof, like a flyer. Based on the screenshot, Apple will honor price reductions from Best Buy, Radio Shack, Target, Sprint, and "Carriers," a category Sprint apparently doesn't fall into.
Also note that this applies to in-store purchases only and not online orders. All that said, this could be a way to score a nice discount on a great smartphone (put away the pitchforks, Android users), as vendors look to unload existing inventory in anticipation of Apple's upcoming iPhone 5.