Wal-Mart on Friday confirmed that it will be selling Apple's iPhone 3G, beginning Sunday at about 2,500 stores. The price, with a new two-year service agreement with AT&T (or qualified upgrade), is $197 for the black 8GB model and $297 for the black or white 16GB version.

"We are delighted to bring customers this ground-breaking mobile technology," Gary Severson, Wal-Mart senior vice president of entertainment, said in a statement. "Our electronics associates have been preparing for many weeks for the arrival of iPhone 3G."