$99 iPhone Rumor Resurfaces

According to a note by RBC analyst Mark Abramsky on Tuesday, he sees a $99 entry-level iPhone coming this summer. Not because Apple reduces cost or comes out with nano version though; he believes it will be a result of crippling (my words) the device.

So what exactly did he say? Well, according to his note, perhaps:

• a lower-resolution camera (what, isn't 2 megapixels bad enough?)
• no 3G (wait, wasn't that the original version?)
• no GPS
• a cheaper data plan with a cap (how that lowers the phone price, I don't know)

Meanwhile the iPhone 3G will get upgrades like a better camera and video recording capabilities.

Here's the way he thinks the two versions will spec out:


Basically the $99 version would have the same form factor, but be missing a lot of the features of the iPhone 3G, while the iPhone 3G would get maybe a bump in screen resolution, a bump in storage, and also video recording capabilities.

I don't know, most are expected a new iPhone this June, but based on the addition in the firmtware of the string "iPhone 2,1" vs. the "iPhone 1,1" of the original iPhone and "iPhone 1,2" of the iPhone 3G, most are expecting a much more significant revision to the iPhone. Plus, there's no string for a "lesser" model.

Additionally, let's not forget what Tim Cook said during Apple's Fiscal Q1 2009 conference call:

Our objective is not to be the unit share leader in the cell phone industry. It's to build the world's best phones.