Friday, Wal-Mart Stores Incorporated announced they were to begin selling Apple’s iPhones as of Sunday, although not at the low price that had been circulating for a while in the media with regards to the web-navigating gadget.

Wal-Mart said it was going to market the black 8-gigabyte iPhone 3G model at $197, while the 16-gigabyte model, either in black or white, at $297.

Moreover, every phone purchased would require a new two-year service agreement from AT&T Incorporated or a qualified upgrade, according to the retailer.

For Apple, the move comes as a means to reach millions of new customers, who may not be as familiar with their high-end products, given that Wal-Mart is known as usually drawing lower-income shoppers.

Still, since the economic crisis has rendered people to go on a hunt for low price merchandise these days, the discount the retailer is offering might just do the trick and help expand the iPhone user base.

Although the gadgets are priced only $2 below the amount for which other locations are marketing the iPhones, the decision to appeal to Wal-Mart as a seller could turn out as a good deal for Apple, even if for no other reason than that the latter is the world’s largest retailer.

Currently, AT&T, which is  the exclusive U.S. wireless service provider for the iPhone, sells the cheapest version of the smartphone for $199 for an 8-gigabyte model, whereas the 16-gigabyte one is priced at $299.

Initially, rumor had it that Wal-Mart would be marketing a 4-gigabyte model of the iPhone for $99, but apparently the news is set to remain only a rumor, since the retailer is selling the iPhone versions that are already on the market.