Apple has become the third largest music retailer in the U.S., besting Amazon in fourth, according to the latest quarterly survey by NPD Group.
Apple now has a 10 percent market share behind Wal-Mart (15.8 percent) and Best Buy (13.8).
Previously in fifth place, Apple leapt over Target and Amazon.
NPD said Apple benefitted from sales of iPods over the holidays, and a slowdown in CD sales. Year-on0year, CD sales are down by 20 percent in the first quarter, according ot Nielsen Soundscan.
Apple and Amazon are the only companies in the top 10 that sell digital downloads.