I don't know if its available in the US or outside Europe, but there is an alternative (and a cheaper one) to the Yamaha Guitarlele, which come from none other than Mahalo.
I looked, played, and compared the Yamaha Guitarlele with the Mahalo Ukulele-Guitar before buying, and to be honest, the Mahalo sounded and played better, and felt more balanced to hold. To me, the body shape was more uke, and the neck felt less chunky and awkward than the Yamaha.
It comes in either steel strung
http://www.dangleberrymusic.co.uk/p-71-mahalo-black-childrens-acoustic-guitar-12-size-ukulele-guitar-steel-string-travel-guitar.aspx
or Nylon
http://www.dangleberrymusic.co.uk/p-101-mahalo-black-childrens-acoustic-ukulele-guitar-12-size-acoustic-guitar-nylon-string.aspx
and in loads of colours. The price here in the UK seems to be between £25 - £40 depending on whether its steel or nylon, and what colour it is.
On getting mine, I ditched the cheapo strings it came with, and changed for a set of Ultra High Tension D'Addario J44 nylon strings, and tuned it EADGBE, but you could just as easily put low tension strings on and tune it up 5 (to A-D-G-C-E-A) to retain the Uke like sound and chords.