According to The New York Post, Apple (AAPL) intends to enter the ringtone business, which has been highly lucrative for cell carriers in Europe and Asia.
It is talking to several music publishers about financial arrangements.
The service will probably be announced next week when AAPL releases it updated iPod products.
According to the paper: "In a new twist, iPhone users will have the ability to choose any part of the song they want as their ringtone."
Douglas A. McIntyre