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.]

According to a press release issued by Apple this morning, two Apple vice presidents are leaving the company for personal reasons, "as they devote more time to their young family."

iPod division senior vice president Tony Fadell and his wife, Danielle Lambert, vice president of human resources, will "reduce their roles" at Apple. Lambert will stay until the end of the year to transition to a successor.

"Tony and Dani have each made important contributions to Apple over the past eight years. We're sorry to see Dani go, and are looking forward to working with Tony in his new capacity," said Steve Jobs in the press release.

Former IBM chip executive Mark Papermaster will be joining Apple later this month to replace Fadell, and will gain the new title of Senior Vice President of Devices Hardware Engineering. He's expected to bring his 25 years of experience to Apple's server technologies, as well.

Papermaster unfortunately arrives with some baggage: IBM filed suit against Papermaster attempting to forbid him from taking his knowledge of the Power chip architecture to other companies.

IBM said in a statement to CNET that "Mr. Papermaster's employment by Apple is a violation of his agreement with IBM against working for a competitor should he leave IBM. We will vigorously pursue this case in court."

[Via MacDailyNews.]