Apple rumored to unveil premium ringtones for iPhone

Apple will reportedly introduce premium ringtones for the iPhone at a media event scheduled for Sept. 9. Citing music industry sources, CNET.com says Apple execs are scrambling to make sure the ringtones are ready in time for next week's press conference, which is expected to also spotlight Cocktail, said to be Apple's effort to stimulate digital sales of full-length albums via the addition of a new interactive booklet including sleeve notes and related supplementary features. iPhone owners have long been able to create their own custom-made ringtones for their smartphones for free--pricing for the premium ringtones is unknown, but sources indicate they will sell for considerably less than $3.00 each. Apple's iTunes digital storefront sells full-length tracks priced as low as 69 cents and as high as $1.29.

Ringtone sales in the U.S. declined from $714 million in 2007 to $541million in 2008--a 24 percent year-over-year drop--according to research firm SNL Kagan, which says the annual decline is the first ever posted for a U.S. mobile content category. In all, ringtones' share of total U.S. mobile music revenues fell from 80 percent in 2005 to 63 percent in 2008. SNL Kagan credits the slump to consumers learning to create their own ringtones by sideloading edited MP3 clips to their phones and in turn bypassing operators' direct sales channels. The firm adds it expects carriers will begin offering ringtones at reduced price points to rekindle consumer demand.

For more on the iPhone ringtone rumors:
- read this CNET.com article

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