Hon Hai Precision Industry, the world's largest contract electronics manufacturer, is in talks with Apple to make the next generation iPhone, Dow Jones Newswires reported Friday, citing an unidentified Hon Hai official.

The Chinese-language Commercial Times carried a similar report Friday morning, calling the second-generation iPhone a 3G (third generation mobile telecommunications) 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.

Recent reports from an analyst at Gartner stated that Apple has already contracted a manufacturer to make the second generation iPhone.

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