The rumor for a $99 iPhone is renewed today by RBC Capital Markets analyst, Mike Abramsky. Abramsky expects the entry level iPhone and the updated 3G iPhone to hit this summer and will have the following specs:

Apple_iPhone_CHART_610x327

From our perspective, we already said several weeks ago that iPhone Nano is inevitable for Apple, but we think that iPhone Nano in the form of an entry-level product versus a different form factor is more credible. It is unlikely that Apple will release an iPhone with a smaller screen and different form factor because it presents too big of a challenge for the developer community to develop applications for different screen sizes and form factors. Apple is riding on its uber-successful App Store, with over 200,000 apps shipping already in less than a yea, and it would be stupid for them to ding themselves.

Apple can essentially ship something with less memory, no 3G, no GPS – similar to the 1st Gen iPhone – as its entry-level product. They would minimize design costs and minimize cannibalization because it would be clearly not as good as the current one versus some may prefer smaller form factor.

You can find more info on Abramsky’s report via CNET.

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