The rumor was resuscitated on Wednesday when Mike Abramsky, an analyst for RCB Capital Markets, an investment firm, sent investors a note declaring that Apple will "most likely" debut the low-budget model in June or July.
Reportedly, the new iPhone "lite," will have EDGE and Wi-Fi connectivity, but no 3G or GPS. The overall dimensions of the smartphone will be the same but the screen will be 3.5 inches with a resolution of 480 x 320'
AT&T will offer a light-weight data plan of about $15 per month to match, Abramsky says.
There's also an updated 3G model on the way, according to Abramsky. The $99 dollar iPhone will also have a 3.5-inch screen, this time with a 720 X 480 resolution. The camera will go to 2 megapixels, but there still won't be any video capability.