Apple has given the exclusive contract to produce the new 3G iPhone to Ho Hai Precision Industry situated in Taiwan, also known as Foxconn. This comes only days after an industry analyst caught word that Apple had ordered the production of 10 million 3G iPhones. However, these statements are now being reported as a misunderstanding.

An official of Hon Hai Precision told Dow Jones News Wire that the company had ben negotiating a contract with Apple for the production of a “more advanced version” of the iPhone, though no further details were released. The new model is predicted to be fitted with a faster 3G chip which could hit the market as early as May, though no other details have been released. Experts predict that the new iPhone

It has been reported that Gartner analyst Ken Dulany had caught wind that Apple might have ordered the production of 10 million iPhones supporting the 3G network. However, it is now being reported that there was a misunderstanding in the communication of this information. It is believed that the new iPhone will have a 3G chip, but the production order has not been confirmed. Apple has hinted at the upcoming release of a new iPhone. It has been reported that Apple stores in the New York area have been sold out of iPhones for the last week, hinting that Apple may be tightening supply of the current iPhone models as it prepares to launch a new model.