Speaking of the iPhone, a report in the New York Times blogs claims that Apple is in talks with major music labels to expand the musical offerings of its popular handset. The report cited several music label executives who said Apple is in the midst of active negotiations with labels, but that no specific arrangements have been made.

The report said that through these discussions Apple was looking to expand its inventory of ringtones and possibly add ringback tones. Other ideas on the bargaining table could include a music subscription model, similar to what Nokia plans to offer.

The Times blog said Apple is looking to close new deals by June, in time for the company’s developer conference when the industry is expecting Apple CEO Steve Jobs to announce a 3G iPhone.