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Apple (NASDAQ:AAPL) could slash the price of an iPhone to $99, continue to supply a nice margin of more than 40 percent and potentially dominate the smartphone market. At least that’s the opinion of a research analyst who issued a report Monday, according to a post on Electronista. The analyst said that a $100 price cut to the 8GB iPhone 3G could “double or triple” sales and quickly overtake other smartphones that are popping up these days, leaving only established successful smartphones - like the Blackberry - as competitors.

In addition, blog post noted that Apple’s growth in non-GAAP revenue - which it said it now would be reporting separately in quarterly earnings calls - could also give the company some serious wiggle room to adjust the iPhone’s price.

The company said earlier this month:

Management uses Adjusted Sales to evaluate the Company’s growth rate, revenue mix and performance relative to competitors. Given the significant increase in iPhone unit sales during the quarter ended September 27, 2008, Adjusted Sales provides a meaningful measurement of the Company’s growth by reflecting amounts generally due to Apple at the time of sale related to products sold within the period. Further, eliminating the effects of deferred revenue (current sales deferred to future periods and prior sales being recognized currently) provides more transparency into the Company’s underlying sales trends.

In accordance with the subscription accounting treatment required by GAAP, the Company recognizes revenue and cost of goods sold for iPhone and Apple TV over their economic lives. Adjusting GAAP sales and product costs to eliminate the impact of subscription accounting, the corresponding non-GAAP measures for the quarter are $11.68 billion of “Adjusted Sales” and $2.44 billion of “Adjusted Net Income.”

Earlier this month, Apple, which has already surpassed its goal of selling 10 million devices this year, said the iPhone now accounts for 39 percent of the business. The company also said the iPhone outsold the Blackberrry during the last quarter.

Source: Apple Could Crush Competitors With a $99 iPhone