iPhones Hit Wal-Mart on Sunday

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. (Read more iPhone stories.)