Wal-Mart stores across the US started to sell Apple's iPhone on Dec. 28 but the prices offered were not as low as expected.

iPhone at Wal-Mart

Wal-Mart now sells the black 8GB 3G model for $197, while the 16GB model is priced at $297.

All of the phones require a new two-year service agreement from AT&T.

Various blogs and websites have earlier speculated that Wal-Mart will sell the iPhones at a much cheaper price and that Apply may offer the older 4GB model for $99 through Wal-Mart stores.

The phones being sold at Wal-Mart now are the same ones already on the AT$T and Apple stores. Only a paltry $2 discount was made available to Wal-Mart customers.

AT&T sells the 8GB version for $199 and the 16GB version for $299. The telco has declined to comment on the Apple deal with Wal-Mart.