It has been widely reported that Spotify, has demonstrated an offline version of the service running on a Google Android mobile phone at Google's I/O developer event and it appears that just like the desktop client it’s a potential winner. It even has "offline mode" that uses cache to store a playlist and turns the phone into an offline MP3 player with Spotify as its client.
Spotify is working on several mobile versions but the big question is wheter Apple will allow or block what is a clear threat to iTunes. Here is an earlier TechDigest video 'showing' Spotify on a iPhone.
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