It is no big surprise to most consumers that Wal-Mart has the lowest prices around. That being said, there was a big surprise last Friday when the retail giant began selling the popular Apple Inc. (NASDAQ:AAPL) iPhone 5 at a large discount. While this deal is not available in every Wal-Mart store, thousands of locations throughout the United States are participating.

Apple Inc. (NASDAQ:AAPL) Press Info

According to a recent story on CNBC.com, “Wal-Mart is selling the 16 GB Apple iPhone 5 for $127, versus an original price of $189.97.”

The story goes on to add that the price is only valid with a two-year contract from AT&T, Sprint, or Verizon.

For those who are not interested in the 16 GB Apple iPhone 5, Wal-Mart is offering a discount on the still popular 16 GB iPhone 4S.

Additional details from CNBC on the Wal-Mart sale include:

- Expected to be available for 30 days

- Available in approximately 3,000 Wal-Mart locations

- Not available for purchase online

Many people find this sale a bit shocking, since Apple Inc. (NASDAQ:AAPL) has been opposed to these types of discounts in the past. For one reason or the next, Wal-Mart was able to breakthrough where other retailers have failed time after time.

Wal-Mart spokeswoman Sarah Spencer told CNBC, “We worked together with them on this. They are a great partner.”

This past weekend, the iPhone 5 got off to a nice start in China – selling more than 2 million units.

With the Apple Inc. (NASDAQ:AAPL) iPhone 5 becoming available in Wal-Mart stores, especially around the holiday season, it is safe to assume that sales will take off. This is particularly true with a lower price point in place for a limited time.

How do you feel about this partnership? Do you think Apple Inc. (NASDAQ:AAPL) made a good move, or should they have stuck with their past policy of not allowing retailers to offer such a deep discount?