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Originally Posted by Brian-bmw
(On the plus side, Apple does claim that their 128-bit compression rate is much better quality than a comperable 128-bit MP3 rip.)
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Apple uses a MPEG standard called AAC or MPEG4-Layer 3, which is an (big) evolution of MP3, so yes, a MP4 at 128kb is way better than a MP3 at the same rate.
Out of curiosity, your mobile device most certainly also supports AAC. Please note the the sound format is standard, but the DRM encoding is not, thus an .m4a (un-DRM-ed) work on a mobile, but the DRM'ed .m4p does not)
http://en.wikipedia.org/wiki/Advanced_Audio_Coding