Speculation pointing to a June introduction of a second generation iPhone that's equipped with 3G support continues following Banc of America reports of the same.

In a note released to clients late last week, Banc of America analyst Scott Craig said Apple plans to build over three million current and 3G iPhones in the June quarter, and eight million or more in the September quarter.

The analyst also said that he may have underestimated the number of iPhones Apple's going to sell in its current financial year; Craig says his eight million estimate is beginning to look too low.

Fuelling the fire, Dow Jones Newswires last week reported that Taiwan-based contract manufacturer Hon Hai had signed a deal to produce of the next generation iPhone.