Walmart has made official the rumor that had been circulating since earlier on the month. Apple has struck a deal with the large retail chain to sell 8GB and 16GB iPhones at a discount on its stores. The company said they will start selling iPhones as soon as this Sunday.

Although initial rumors anticipated that Walmart would sell iPhones for $99, the discount will be kept at a minimum in reality. The black 8GB iPhone 3G will be selling for $197, while the 16GB model will go for $297. As usual, the phones will require a two-year service activation with AT&T or a qualified upgrade.

Update: Story edited for accuracy.