Wal-Mart will start selling Apple's iPhone 3G on Sunday, but not at the big discount which many had been anticipating. 
Wal-Mart will sell the black 8GB iPhone 3G with a two-year service plan from AT&T for $197 -- just two dollars off the usual price. The 16GB model, in black or white, will cost $297 with a two-year AT&T service agreement. The popular phone will be available at nearly 2,500 stores beginning on Sunday.
"We are delighted to bring customers this ground-breaking mobile technology," said Gary Severson, Wal-Mart's Senior Vice President. "Our electronics associates have been preparing for many weeks for the arrival of iPhone 3G."
Until now, the iPhone has only been available through Apple's own stores, AT&T outlets and electronics chain Best Buy.
The Internet has been buzzing for weeks about an appearance by the iPhone in Wal-Mart stores and numerous websites had previously speculated that Apple would offer a 4GB model at $99.
Wal-Mart typically appeals to a lower-income group of shoppers than those who buy Apple's Macintosh computers, iPods and iPhones, which are typically more expensive that other PCs and music players. But the world's largest retailer has also lured new customers seeking low prices in a recession.
AT&T announced it would be selling refurbished iPhone 3Gs at $99 with a two-year agreement.
