Whither the cheap, low-capacity Walmart iPhone? MacRumors' Arnold Kim now anticipates that Walmart will be offering 8GB iPhones for $197, with no mention of smaller capacities or lower prices. The price is two bucks cheaper than at an AT&T retail store.

MacBlogz's Aviv Hadar mentioned late last week that their sources at AT&T said a 4GB model was "simply not true."

The original story, from BoyGeniusReport, was treated with a heavy dose of skepticism even from them, as the source wasn't one of their usual fonts of reliable information.

In related news, the San Jose Mercury News notes that Bay Area Walmart stores may begin carrying iPhone handsets before Christmas, citing employees and managers at those stores.

Otherwise, expect the devices to go on sale December 28.

[Via MacDailyNews.]

Your source for all iPhone-slash-Walmart news, BoyGeniusReport, has a whopper for you: Walmart might offer the 4GB iPhone for $99 when they start selling the handsets after Christmas.

Even they're skeptical, though: Their tipster isn't one of their regulars, and so they can't say with any certainty that it will come to pass.

The discount makes sense, in a way. Selling the low-end iPhone at a ridiculous price will turn it into the new Motorola RAZR. Apple would love everyone in the country to own one, I'm sure. It's not clear who will eat the discount, though -- Apple, AT&T, or Walmart -- but my guess is that it's mostly Apple. Apple has other revenue streams for the iPhone, such as the App Store and iTunes, and AT&T still has its spendy two-year contract. If this is what Apple needs to do to make this the ubiquitous handset to have, then it may be worth the cost to them.

On the other hand, as many commenters at BGR have pointed out, with ubiquity comes rejection. Suddenly, the iPhone isn't the cool status symbol to have anymore. This doesn't bother me one bit, but to some people -- for whatever reason -- it's important to them. (I have special names for those people.) Nevertheless -- will it impact sales? How much is the "hip" coefficient driving purchases?

In any event, consider this one of those situations where the Internet is writing checks that Walmart's butt might not be able to cash. But pretty sweet if it does.

Walmart will be taking a pass for most of the holiday shopping season with one particular item: the iPhone. It will begin selling the handset December 28, according to Jamie Townsend, of research firm JRPG.

Boy Genius Report also notes that the phone will be sold in some Sam's Club stores as well. The blog broke the news about Walmart's talks with Apple, but originally said the smartphone would hit shelves last Saturday.

Walmart seems to be capitalizing on post-holiday shopping fervor, with BGR's Zach Epstein speculating, "Won't people be happy when they find out Apple's handsets popped up at discount prices three short days after Christmas?" It depends on how meager Christmas is, I suppose.

The handsets will apparently be activated in-store. No pricing details were released.