Wal-Mart to Start Selling iPhones on Sunday

Wal-Mart confirmed via a promotional flier that it will start selling the iPhone 3G on Sunday, December 28.

Courtesy of Apple

Wal-Mart will sell the 8 GB iPhone 3G for the stunningly reduced price of $197, a $2 savings over retail. The 16 GB model will go for $297, the same $2 savings. Purchase requires activation and a two-year service contract with AT&T.

A quick check of Wal-Mart competitors reveals that the $197 price is no bargain, at least through the holidays. Best Buy is selling the same 8 GB iPhone 3G for $189 through December 31. For those of you who want an iPhone 3G at the lowest possible price, AT&T is selling refurbished models as low as $99, although stock is limited.

It has been speculated that once Wal-Mart starts selling iPhones, Apple will see a large increase in units sold. It could happen, but if it does, I don’t think it can be racked up to the Wal-Mart happy face rolling back iPhone prices.