Apple Inc is clearing out its iPhone inventory to unveil new and improved iPhone 3G Pro versions, according to an analyst.

RBC Capital Analyst, Mike Ambrsky, who maintains an Underperform rating and $70 price target on the stock said, an “entry level” iPhone is less likely.

“Build data and other checks suggest Apple may not launch a lower priced iPhone as soon as generally thought,” he said. “If so this may help protect margins, but might leave iPhone’s market share vulnerable to lower-priced competitive alternatives.”

The new and improved iPhone runs using the HSUPA standard rather than the current HSDPA version, and includes better graphics and video recording and messaging, Ambrsky said.

It will also come in 16 GB to 32 GB version and be thinner with costs between $199 and $299.

In January, Apple recorded 10.2 billion in revenue in first quarter ended December 27, 2008, a 6 percent increase compared with $9.6 billion a year ago. And net income of $1.6 billion.

Shares fell 3.21 cent to 3.00 percent at $103.64 in the in the middle of intensifying competition and global recession trading.

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