Music phones outsell digital audio players

Currently there are many phone models on the market, including Walkman-series from Sony Ericsson, Rokr-series from Motorola, Music Edition-phones from Nokia and others, which are tailored for music playback and which already pose very serious competition to Apple’s iPod and other music players. But in addition to outselling the specialized devices from companies like Apple or Creative Labs, MP3 phones may be a threat for music selling services like iTunes.

“The rising number of mobile music track downloads and the increasing sales of music-enabled phones as a competitive threat to broadband music and standalone MP3 players,” the report says.