Industry insiders are questioning what impact Apple's new iPhone could have on the nascent mobile music market (say that three times fast). Even though iPhone is destined for greatness, it still doesn't change the model for music distribution by tethering users to a desktop rather than OTA (Over The Air) for purchasing and downloading content.

Some analysts, however, say mobile music sales will be dampened as long as users are limited to loading music on their phones via their PCs and Macintosh computers, and blocked from buying music wirelessly. "The whole idea of on-the-go instant gratification isn't there," said Ted Cohen, managing partner of media consulting firm Tag Strategic.