Jobs made no secret of iPod's challenge to Sony during his presentation, telling the crowd that the iPod was outselling Sony's latest star product, the PlayStation Portable, or PSP. Sony sold about 2 million PSPs in the last quarter but Apple shipped more than 6 million iPods during that same time.

Offerings from Japanese artists on Sony labels aren't available on iTunes, said Sony Music Entertainment spokeswoman Kiyono Yoshinaga.

"We are in talks with Apple, but we have not reached an agreement at this time," she said, while declining to give details

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