TAIPEI -(Dow Jones)- Taiwan's Hon Hai Precision Industry Co. (2317.TW), the world's largest contract electronics maker, plans to ship at least 10 million third-generation iPhones for Apple Inc. (AAPL), a person familiar with the situation told Dow Jones Newswires.

The person, who declined to be named, said Apple will likely launch the new generation iPhone as early as the second quarter.

"Hon Hai is ready to ship anytime. It is just waiting for the nod from Apple," said the person.

Last week, another person familiar with the situation told Dow Jones Newswires that Hon Hai had received an exclusive contract to make an advanced version of the iPhone.

Apple spokeswoman Jill Tan declined to comment Tuesday.

Apple, like many other big personal-computer and consumer-electronics brands, doesn't actually make most of its products. It hires manufacturing specialists - mainly companies from Taiwan that have extensive operations in China - to assemble its gadgets based on Apple's designs. They use parts from other outside suppliers, many of which also are from Taiwan and elsewhere in Asia.

Bank of America said in a recent note that Apple is expected to launch a high- speed wireless version of the iPhone in the second quarter and produce as many as 8 million of the devices in the third quarter.

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

  (END) Dow Jones Newswires
  03-31-08 2352ET
  Copyright (c) 2008 Dow Jones & Company, Inc.