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Wal-Mart to sell Apple's iPhone

Wal-Mart Stores Inc., the world's largest retailer, said it will start selling Apple Inc.'s iPhone on Sunday in almost 2,500 U.S. stores to bolster its offering of consumer electronics.

An 8 gigabyte version of the Web-surfing iPhone 3G model, with a two-year AT&T Inc. service contract, will cost $197, and a 16 gb version will go for $297, Wal-Mart said.

Selling the iPhone will draw more customers and burnish Wal-Mart's reputation as a consumer-electronics destination, analysts said.

"It's impressive that a manufacturer with the cachet of Apple chooses Wal-Mart as the next place to go after Best Buy," said Joseph Feldman, an analyst at Telsey Advisory Group in New York.


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