The world's largest contract electronics manufacturer - Taiwan's Hon Hai Precision Industry - is in talks with Apple to make the next generation iPhone, according to Dow Jones, which cited an unidentified Hon Hai official.

The Chinese-language Commercial Times carried a similar report on Friday morning, calling the second-generation iPhone a 3G handset. The Commercial Times cited unidentified "mobile phone industry sources" for its information.

Hon Hai representatives could not be reached, and did not return repeated calls.

Apple has said it expects to ship 10 million iPhones by the end of this year.

See also:

Report: Ten million 3G iPhones ordered by Apple

Apple iPhone review