TAIPEI -(Dow Jones)- Taiwan's Hon Hai Precision Industry Co. (2317.TW), the world's largest contract electronic maker by revenue, is in talks with Apple Inc. (AAPL) to make the next-generation iPhone, a Hon Hai official said Friday.

The official, who declined to be named, said the handset will be a "more advanced version" of the iPhone.

Apple spokeswoman Jill Tan declined to comment on the next-generation iPhone, but said Apple expects to sell 10 million iPhones by 2008.

-By Wei Yi Lim, Dow Jones Newswires; 88622 502-2557; weiyi.lim@dowjones.com

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  03-27-08 2339ET
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