At this point, it's clear that the $99 iPhone 3G rumor was just that: rumor. We have a letter that we believe to be authentic from a source within Walmart that says the iPhone will launch in the house that Sam built at 9am December 28th. At launch, only the 8GB ($197) and 16GB ($297) iPhone 3Gs will be available with a required signature on a 2-year AT&T contract. An internal pilot program kicks off today at 488 stores across the nation. The iPhone 3G and a sack of garden manure all under the same roof... heaven.

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Walmart iPhone on sale the 28th for a lot more than $99