$99 iPhone Coming this Summer?

Rumor has it that Apple will be introducing a $99 entry level iPhone this summer. What features would you get for $99? Details are sketchy, but you can bet that the phone would NOT have GPS capability or a high-speed 3G connection. However, RBC Capital Markets analyst Mike Abramsky states in a report just filed that it will have the same screen size and dimensions as the current iPhone 3G and have wi-fi and Bluetooth. But, the camera resolution will be less than 2 megapixels and it will not have video. A ‘light’ data plan of around $15/month is also planned.

An upgraded iPhone 3G is expected this summer as well. Pricing is expected to remain the same, but the memory will double (from 8GB and 16GB to 16GB, 32GB), a video camera will be added and touchscreen resolution will be 720 x 480.

What I wonder is this: Will a $99 iPhone help or hurt Apple? Will they in turn have to lower prices on their iPods? Comment below to let me know your thoughts…