Apparently the word is that Apple Guru Steve Jobs is somewhat convinced that their new iPad will “cannibalise” the iconic iPhone and thus is gearing up to lower the price of the popular smartphone states a report over on techeye.

They gain their info via analysts Morgan Stanley who apparently predict that Apple will lower the price on the iPhone once their iPad hits store shelves later this month. The word is analyst Katy Huberty has said that Apple is facing competition from Microsoft and Google and that she expects the next generation of iPhone to launch in June.

Apparently she goes on to state that the launch of the next iPhone in June will offer a lower total cost of ownership along with new functionality which could include gesture based tech.

The article appears to suggest that the Apple iPad will “eat into” the iPhone apps market as people who purchase the iPhone for its apps will opt for the larger screen iPad. So what do you think readers, will the iPad have an effect on iPhone sales?