Increased competition in the digital download sector will actually be good for Apple, according to a music industry expert.
Apple currently dominates the sector through its iTunes store, which sold its three billionth track last month.
However, Universal Music Group, Wal-Mart and Rhapsody have all recently unveiled plans to compete with iTunes, by offering downloads without the digital rights management (DRM) copy protection technology.
Many market experts had predicted the new type of competition could pose Apple a serious problem, but Susan Kevorkian, an analyst at research firm IDC, disagrees.
She told the Chicago Tribune: "iTunes was developed to promote iPod hardware sales. The introduction of services that offer digital music to the installed base of iPod users will help drive more iPod sales."
Meanwhile, internet rumours have suggested Apple is planning to launch new versions of both the iPod and iPod nano at a special event early next month.
© 2007 Adfero Ltd
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