According to an industrial analyst Katy Huberty, 85% of the people don't buy iPhone because of the hardware cost and 66% don't use iPhone because of high service charges. So iPhone hardware cost and service charges are the major issue in the mass level adoption of iPhone. Acc. to Huberty iPhone 4G will be less costly than is predecessors.
"We expect Apple to launch new iPhones in June that offer both a lower total cost of ownership and new functionality, potentially including gesture-based technology," she wrote in a new note to investors Friday.
Huberty remains bullish on Apple’s stock situation, and optimistic about the forthcoming iPad devices from the Cupertino based company, saying:
We expect Apple to ship its first iPad and announce additional content deals in late March to better than expected demand," Huberty wrote. "We see the iPad targeting the sub-$800 consumer notebook market which equates to 30M annual units just in the US (120M globally).
Last year when iPhone 3GS was released, Apple dropped the prices of iPhone 3G to 99$. However, despite the lower price point, the high end iPhone 3GS was still the most popular option for consumers.
In the past, Huberty was notoriously negative on AAPL stock, suggesting the iPhone was too expensive even at a $199 price point. In late 2008, she predicted that iPhone sales would suffer because Apple had priced the product too high. But last year, Huberty turned positive on Apple, stating that the company had become the "clear leader in the battle over the mobile Internet".
Next-gen iPhone 4G is expected to be released at WDDC, 2010. It will have a fast processor, a 5 megapixel camera with LED flash, support for WiFi-N standard, Super AMOLED screen, video chat capability and so on. For complete rumor list of iPhone-4G, please visit here.