Toronto (ECN) - Starting on Sunday December 28th, 2008, Wal-Mart Store inc., will start selling Apple's iPhone. This popular mobile device will be marketed and sold at $197, quelling rumors that apple would a sell a new version of the iPhone device at $99 to suit the lower income Wal-Mart shoppers.

The $197 price is $2 off the normal retail price of the 8GB iPhone. Wal-Mart will also sell the 16GB model for $297. Along with the devices, the iPhone customers will be required to sign a two year service agreement with AT&T.

According a press release by Apple, Wal-Mart stores can “match the price of any local competitor’s advertised price on the same item within the same promotional period” which will set the tone for a lower priced device than the suggested retail price.

The move by Apple to release iPhone to the Wal-Mart chain increases the number of point of sale locations for the device which could technically double the sales of the iPhone bringing the predicted total sales for the units in 2009 to approximately 4.5 million units.

Apple's move into Wal-Mart is seen by experts as a calculated move, tapping into the new breed of Wal-Mart shoppers; those driven by the recession and are seeking the lower prices offered by the retail giant.

Wal-Mart typically carries less expensive PC brands and does not normally attract shoppers that purchase Apple brand products. This venture opens a new market for both Apple and Wal-Mart.

Note: The announcement is only for American Wal-Mart stores.  There was no word from Wal-Mart Canada on whether it would sell the iPhone.