£75 iPhone set for summer release?

There seems to be no let up in the predictions surrounding the launch of a sharp new iPhone this summer. And after chatter about three new models surf

Mark Abramsky of RBC reckons Apple is lining up two models. A pared down $99 version alongside a specced up 3G model. The latter would pack a better camera, video shooting and 32GB, making it significantly cooler than the current iPhone 3G.

The low spec model wouldn't be an iPhone nano, rather an EDGE version with no video, a cheap monthly tariff and a $99 price tag in the US. So roughly £75 here.

Obviously, this is pure conjecture, but with word of a cheaper model growing more widespread, it really does look as if Apple is planning on dabbling in the cheap end of the market.

What do you think? Spot on or a load of hot air? Tell us in the comments section.