iPhones Hit Wal-Mart on Sunday

Discount retailer shaves whopping $2 off price for gizmo
By Kevin Spak,  Newser Staff
Posted Dec 26, 2008 1:06 PM CST
Exterior of Walmart in San Jose, Calif., Wednesday, Aug. 13, 2008.   (AP Photo/Paul Sakuma)
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(Newser) – Wal-Mart shoppers will notice a flashy new phone on the shelves Sunday, but the price may induce sticker shock, Reuters reports. The iPhone is making its long-awaited Wal-Mart debut, but the 8-gigabyte version comes with a $197 price tag and requires a 2-year AT&T contract. Rumors had flown that Apple would offer a smaller, cheaper model to lure the mega-store’s millions of mostly low-income, thrift-minded patrons.

The move may put pressure on Best Buy, the only additional retailer selling the iPhone other than AT&T, which prices the 8-gig model at $199. Best Buy currently offers $10 off its iPhones, though Wal-Mart says it will be able to match its competitor’s advertised discounts.