Analyst Charlie Wolf of Needham Research released some analysis earlier today that Apple may be wise to slash the price of the iPhone down to $99.

He suggested that the company has room to do so financially, and the new, more affordable device would allow them to take almost cmplete control of the smartphone market and deal a deathblow to Blackberry and other related competition.

He estimates the average unsubsidized price of the iPhone during the summer to have been $666, giving Apple a 50% gross profit margin on the device when balanced with the sale price and a hefty $450 subsidy from AT&T for each one.

The prospect of this actually happening is fairly unlikely, since the iPhone is already outselling all other smartphones in the US, but if Apple does listen and do this, it would really make waves in the phone industry.