Apple's $99 iPhone may boost market share

With all the hype generated from Monday's introduction of new Apple iPhones, one item possibly overlooked is that Apple will be selling an iPhone for less than $100.

"There's nothing even close to an 8GB iPhone that's close to $99," said Ryan Jacob, who manages the Jacob Internet Fund, which owns Apple (AAPL) shares. "You'll be surprised how many 8GB phones they'll sell at $99 even though it's the older version."

Apple will boost its share of cell phone sales by opening the door for consumers who refuse to pay more than $100 for any mobile phone, no matter how many bells and whistles are packed inside. With Apple's new 3.0 software on its 3G phone, which cost $199 before Apple dropped the price yesterday, new iPhone customers get added new features at half the cost of last year's model.