RBC Capital Markets analyst Mike Abramsky reports today that consumers can expect a $99 iPhone this summer.
The current iPhones cost $199 for an 8-gigabyte model or $299 for a 16GB model with a two-year agreement with AT&T. Abramsky thinks a cheaper iPhone might increase Apple's global market share for smartphones from 12 percent (currently) to as much as 19 percent.
Abramsky said the new iPhone will not run on AT&T's faster 3G wireless network, instead using the older 2.5G version. But the $99 phone is expected to have Wi-Fi and Bluetooth compatibility, as well as the same size screen. He predicts the new phone will have a lower resolution, but also a cheaper data plan -- one for $15 per month, half the current rate.
Apple doesn't comment on products in development.
The report says the current iPhone will keep its pricing while possibly adding new features like a better-looking screen, a video camera and more memory.