There had been speculation that Walmart would start selling the iPhone and this was confirmed earlier today by Bloomberg. Walmart will carry two models starting later this month. It's still unclear if this will be the 8GB and 16GB models available today or perhaps a new $99 4GB iPhone 3G. Bloomberg contacted five stores, all of which confirmed the late-December availability. Employees are currently being trained on how to use the device. Employees have not been told what models will be available, leading to more speculation of a 4GB model.

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There have been rumors of Walmart being the next retailer to carry the iPhone, but now comes word they might be selling a 4GB version of the iPhone for just $99 with a 2-year agreement. It certainly sounds plausible as a 4GB iPhone would give Apple a low-cost model to compete in the sub-$100 market where phones like Palm's Centro have seen good results.

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