The move from Apple (APPL) to sell its much loved iPhone 3G in WalMart (WMT) has been welcomed by investment banks and research firms.

The iPhone is to be sold later this month in WalMart but research firms warn that selling a $99 model which is reportedly a 4GB model would go against Apple’s strategy and would present an unnecessary risk.

Research firm USB Investment Research analysts said that the $99 iPhone would be uncharacteristic of Apple and noted that it would be better for Apple to just include chain stores like Best Buy, WalMart and Sam’s Club as further iPhone distribution points.

The research firm also added a 4GB iPhone would eat into Apple’s fiscal year 2009 per share with an earnings estimate of 27 percent, WalMart would then have to sell around 1.5 million of the iPhone 4GB to offset the impact it would have on the fiscal year 2009.

What do you think about a 4GB iPhone for $99, do you think that it will put people off of buying the 8GB and 16GB versions?

Source: Appleinsider