iPhones to be sold at Wal-Mart

Apple's iPhone is one of the few products selling well this holiday season and Wal-Mart is one of the few retailers where people are shopping these days. So some marketing geniuses have decided (ta-da) it makes sense to sell iPhones at Wal-Mart stores.

Actually, it is a very good idea for both firms: Apple is seeking to dominate the smart phone apps market like Microsoft dominates PC software. Meanwhile, Wal-Mart is looking to cement its reputation as the essential retailer — and not just in bad times.

This deal should help both companies pursue those goals, although various reports say the iPhone won't be available in Wal-Mart on Dec. 28, which may cannibalize some holiday sales.

The key issue of contention right now is the price, with many sources refuting the "$99 iPhone" story, as AppleInsider.com details.

Wal-Mart Stores Inc. will become the second mass-market retail chain to start selling Apple Inc.’s iPhone, with two store representatives saying the world’s largest retailer will carry two models of the Web-surfing handset this month.

Employees in the cell-phone departments at five California stores, contacted by phone today, said Wal-Mart will offer iPhones by the end of December. Employees are currently being trained on how to sell the device, all five said.

Apple Chief Executive Officer Steve Jobs tapped Best Buy Co., the largest U.S. electronics retailer, in September to sell the device as he works to win more buyers. Before then, the iPhone had been sold only by Apple and AT&T Inc., the exclusive provider of wireless service for the phone in the U.S.

Analysts say Apple may offer a discontinued 4-gigabyte version through Bentonville, Arkansas-based Wal-Mart and sell it for $99. Apple currently sells two models at $199 and $299.