| While an MP3 can sound very close to CD music, it is a "lossy" format. This means some of the audio information is removed to make the file smaller. As a result, it doesn't contain the full spectrum of sound that CD audio does.
The real question when it comes to audio quality, is whether you can actually hear the difference. CD audio depends both on your equipment to produce the full range of audio and your ability to hear it. Cheap headphones or speakers combined with a set of ears that may not be 100% will mask many of the imperfections of a lower quality MP3.
On the other hand, someone with excellent hearing and a high quality sound system will hear the compression of an MP3. Often, though, using less compression will make the audio sound much closer to CD quality.
Finally, if your audio doesn't contain a wide frequency range or you don't care about a bit of extra compression, you can fit more music on a device with less storage. In the end, it's up to the individual to decide what works for compression.
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