Following meetings last week with digital music companies such as Apple and RealNetworks, American Technology Research analyst Shaw Wu said he is “more convinced than ever that Apple has a substantial lead and advantage” over competitors.

In a research report obtained by iLounge, Wu said that the tightly integrated combination of the iPod, iTunes and iTunes Music Store shows no sign of giving up ground to competing companies and formats. “This is despite competitive efforts over the past 2-3 years and continued efforts to erode its dominance,” he said.

“Progress is being made by the Windows Media camp, but coordination and integration are proving difficult because of the many vendors involved including systems, semiconductor, software, content, and service providers, with their various agendas and diverse geographies,” Wu said.

Wu also said that Apple could introduce more than just new iPods at the Apple Expo this September. “We believe Apple could use the upcoming keynote by Steve Jobs at the Apple Expo 2005 event in Paris to make a significant announcement beyond just new iPods,” Wu said. “We believe this could be new markets including music subscriptions and video and the ever-elusive Motorola iTunes cell phone.”