According to AppleInsider, the upcoming next generation of iPhones would cost less than the previous versions. The next generation iPhone would be obviously more powerful than the previous versions, but for a very reasonable price.

According to Morgan Stanley – an industrial analyst, the biggest hurdle which lies between the smartphone consumers and the iPhone is the cost of its hardware (and service plan too, which is likely to remain unchanged), which affects more than 85% of the consumers. This problem would be overcome in the next generation of iPhones. Check out this graph which describes the reasons behind the consumer’s hesitation (some how) in purchasing an iPhone.

“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,” Huberty wrote in a new note to investors Friday.

“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.”

Morgan Stanley has maintained its “overweight” rating for AAPL stock, with a price target of $250.