Next Gen iPhone To Be Cheaper To Own With Gesture Based Controls

Of course, we are getting rumors flying out now from “Reliable Sources” and “Analyst” predicting all sorts of things. Well here’s one I’m hoping will turn out to be true.
Fortune reports on a new research note from a Morgan Stanley analyst by the name of Katy Huberty. She is predicting strong sales of Apple’s iPad and that for the iPhone to continue its growth, it will need to be cheaper to own to help drive sales as it may very well lose some to the iPad.

In a report to clients issued Friday, Morgan Stanley’s Katy Huberty offered one of her patented risk-reward snapshots of Apple (AAPL), this one even more optimistic than the last, thanks to what she sees as two new catalysts:
- The iPad launch in March. Huberty is anticipating unit sales of 6 million in calendar 2010, considerably higher than the Street’s consensus of 3-4 million
- New iPhones in June. She’s expecting new models that offer “both a lower total cost of ownership and new functionality, potentially including gesture-based technology”

We haven’t been told of any more information about the “Gesture-Based technology” but I wonder what it could be? It would have to have something to do with the camera I presume. Also she didn’t tell us where the “Cheaper” part of ownership would be.
Will it be cheaper carrier rates and phone packages? Or actually cheaper hardware?
What do you think? Let us know in the comments