Analysts Predict iPhone 4G to be Cheaper and Better

The biggest hurdles in iPhone’s growing popularity are the cost of ownership and its exclusivity with AT&T. There have been rumors in the past about iPhone coming to Verizon, and now a financial analysts predict lower priced iPhone with the upcoming 4G’s coming in June.

Katy Huberty of Morgan Stanly stated “the new model will feature new technology, including what is vaguely referred to as "gesture-based functionality," and that this could propel Apple stock to as much as $435 per share. As per Morgan Stanley Research report, 85% people considered iPhone hardware cost to be a barrier in its adoption while the carrier plan cost stops about 66%.

Separately, Toni Sacconaghi, an analyst with Bernstein Research, in a note to investors reported by the Barron's Tech Trader Daily blog, said that Apple is on track to sell 45 to 50 million iPhones this year, which would be more than double the 20.7 million iPhones sold last year. This would bring in 45 to 50% of Apple’s total revenue, up from 30% in 2009. Sacconaghi also predicted that Apple will sell 2.2 million iPads in 2010 and 6.8 million the following year.

Apple is expected to make exuberant  amount of money in the coming years. With a  $25 billion cash flow US,  sources present at the Apple shareholder meeting this week reported that Steve Jobs has no intentions of using the money to buy back stock or pay dividends to investors. According to the mercurial CEO, the cash will be used for "big, bold moves" such as acquiring  new technology. “ They are confident enough that, in order to really move  forward, they need to make bolder moves toward new technology.

Along with the “gesture-based functionality” the next-gen iPhone is also rumored to feature 5 megapixel camera, video chat, LED camera flash, faster processor, 802.11N standard, and AMOLED screen.