With some analysts saying it is impossible for Apple to reach its target of 10 million units throughout the course of the year, Apple CEO, Steve Jobs, is about to prove them wrong while increasing its share of the mobile phone market.

A report provided by an unnamed source within Apple has confirmed that Hon Hai Precision Industry of Taiwan, also known as Foxconn, has been given the contract to produce Apple’s newest iPhone model. This is consistent with Apple’s usual practice of outsourcing production to contract manufactures primarily in Asia. Since the report, Apple has denied to comment on the status of its production.

This is only one of the signs hinting that a new iPhone is on its way. It has been reported that iPhones have been sold out in Apple stores across the country, suggesting that Apple is trying to keep supplies of the current model short as the second generation iPhone makes its way on to the market.

It is believed that the next generation iPhone will start production in May, with an initial 3 million units being produced in the next quarter. Production in the third quarter production is estimated to skyrocket to 8 million units, split between the current model and the new model iPhone. Earlier predictions estimated Apple to only sell 8 million units this year, though these figures have been dismissed as Apple’s new production reports indicate otherwise. Though the 3G iPhone has been confirmed, the real mystery lies with the phone’s design which has yet to be released. Experts predict a change in the new phone’s design as it has been common practice with Apple to update its designs from model to model.

Pricing is still yet to be confirmed, with Apple most likely taking one of two actions: selling the new iPhone at the price of the current models, while selling the previous model at a reduced price, or selling the newer models at $100 more than the current models, which will most likely not happen.