SAN FRANCISCO (Bloomberg) - Apple Inc. has placed a manufacturing order for 10 million updated iPhones that can download from the Internet at a faster rate than current models, Gartner Inc. said.

The new phones operate on third-generation, or 3G, wireless networks, analyst Ken Dulaney said yesterday in an interview. He cited an unnamed source in Asia, where the devices will be built. The iPhones also may have a screen that is thinner and consumes less power than Apple's current version, he said.

"This is an order placed at the factory, a commitment to the manufacturer," Dulaney said, citing his source. The phones would likely be produced over 18 months, he said.

CEO Steve Jobs plans to ship 10 million iPhones this year, up from 3.7 million in 2007. The handset, introduced in June in the US, currently does not support the network speeds that buyers in Europe and Asia demand, Mr. Dulaney said.

Apple, based in Cupertino, California, began selling the iPhone in the UK, Germany and France in November. The company added Ireland and Austria this month. Apple expects to sell the device in more markets in Europe and Asia this year.

Company spokeswoman Jennifer Bowcock did not immediately return a call or e-mail seeking comment.