Already we are hearing of rumors of next generation Apple iPhone, called Apple iPhone 4G. An analyst at Morgan Stanley Katy Huberty, has said in a research note that Apple is likely to launch new iPhones in June with the advantage of lower overall cost and new enhanced technology.

In her own words, "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. As we've highlighted in the past, the cost of device-plus-service plan is currently the biggest barrier to incremental demand in both mature markets like the US and emerging markets like China."

Now you will ask, why should we believe the rumors of iPhone news. Well, didn't the rumors of Apple Tablet materialize in the form of Apple iPad? So why not the iPhone update!

Going by precedents that Apple has set, Apple reduced the price of iPhone 3G to $99 when 3GS was introduced in 2009, so it is likely that the new iPhone 2010 will have lower price than expected. Apple did it with iPad at a very low price of $499.

The other factor that the analyst has referred to is "gesture-based technology". What does that mean? There is a clue to this latest technology in the patent filings from Apple.

Let me explain Apple's own patent filing:

The patent shows a new concept by which user with a swipe of his finger over the camera lens, can take charge of incoming calls and voicemail. Also this technology will give a improved experience with one handed navigation of you name it you get it like web pages, contact list, itunes library etc. All you have to do is just swipe the camera lens in various motion combinations. In future iPad is also expected to use this technology so you will be able to turn pages by just flicking your finger over the camera lens.

That definitely sounds very promising for the next generation smartphones. If all these features are added  to the latest iPhones with features like five-megapixel camera, video chat support and LED flash then who cares if the price is low or not. Right? Let us wait and watch for Apple News to find out what iPhone 4G is going to be all about.