Apple iPhone speculation is heating up with the Commercial Times of China reporting that Taiwan-based Hon Hai Precision Industry Co will soon begin production on an iPod phone. The newspaper cited industry sources who confirmed that Hon Hai Precision Industry Co Ltd has secured contracts from Apple Computer for 12 million mobile handsets that also function as music players.

Imagination and Photoshop have enabled aspiring designers to create their own iPhones

The paper also reported that Hon Hai won orders from Apple for its new 15-inch MacBook personal computers which it will deliver starting next month or in January. A new MacBook contract was awarded to a new manufacturer due to a rumored 30% failure rate of the first generation models.

The Commercial Times of China speculated that Apple will launch the iPhone mobiles in the first half of next year. Although, only Apple knows for sure when they will unveil the new cellulars. Rumination about Apple's entry into the cell phone market has been going on for quite some time and even Futuremusic is guilty of reporting on Apple's iPhone strategy.

The Chinese manufacturing company, sometimes known as Foxconn, will most likely get a tongue-lashing from Apple's CEO, Steve Jobs, who's notoriously tight-lipped about upcoming products. However, if the Commercial Times of China's report is accurate, an announcement at the January MacWorld is almost certain.

The Future: Cell phone companies, such as Cingular, are the ultimate power brokers in the mobile industry - often bullying manufacturers into non-lucrative deals. However, Apple knows how to design cool products that are useable, something that the mobile industry has been missing for quite some time. (Ever use Windows Mobile?)
Even though the carriers will exert control over revenue splits and pricing to some degree, the actual financial details may actually come out in Apple's favor. And even though Cingular was rumored to be the initial iPhone carrier, Apple will use the iPhone's hype to secure the best deal...simular to what they recently did with the iTV.

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