After much speculation, US retail giant Wal-Mart on Friday, finally confirmed that it will start selling Apple’s iPhone 3G beginning Sunday at about 2,500 stores, but not at the big discount which many had been anticipating.

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, which are just $2 cheap than the usual retail price of the phone.

For the past many weeks, many customers had been expecting the company to offer a four-gigabyte model at a cut-rate price, even as low as 99 dollars.

It may be noted that popular smartphones, which are presently available at retail stores in Apple, AT&T and in Best Buy, are selling at a price of $199 for 8GB while $299 for 16 GB phone.

Market experts believe that Apple’s iPhone 3G continues as a best-seller, despite impressive gains by established rivals RIM—maker of the Blackberry Storm—and Samsung.