You’re familiar with the $99 iPhone rumors that refuse to die but you might not know that the idea isn’t universally loved. Some folks that focus on the business side of Apple think the idea of a $99 iPhone is ludicrous. Take Brian Caulfield at Forbes for one. From Brian’s article:

The problem: With consumer spending declining to its lowest levels since 2002, a cheap phone could damage Apple’s sweet iPhone business. “The economics of an entry-level iPhone appear less attractive when factoring in iPhones/iPod cannibalization,” Abramsky wrote. “Apple must sell three $99 iPhones to replace gross profit from one 3G iPhone.”

Here’s a tip for both Brian and Mr. Abramsky: If the $99 iPhone comes out Apple won’t be worried about cannibalization. Apple is a crafty company, you’d think that the Mac mini would be an iMac eating macine but Apple has set things up so that the only people who buy the Mac mini are… Well, hardly anyone buys a mini. One would expect the same with a less profitable iPhone. The low price gets people in the store but no one goes for the base model. Heck how many people do you know who rocked the 4GB iPhone?