Technology Giants are not ready to compromise for any portion of the business, at least in the case of Google & Apple. Stepping up rivalry, Google Inc is in talks with Music labels to launch its music store, a competitor of Apple’s iTune, as reported by Reuters. Google’s Music Store can be launched as early as by Christmas this year.

Google has already initiated the dialog with few music labels on plans for a download store and a digital song locker that would allow its mobile users to play songs wherever they are, according to Reuters. Google’s Andy Rubin, the brains behind Google’s Android mobile operating system, has been leading conversations with the labels about what a new Google music service would look like.

Analysts feel that rocketed success and demand of Google’s Android made the company to think about such move. Recently company has announced that 200,000 Android phones are getting activated everyday which beats the iPhone activation figure, 130,000 each day, and far better than iPad sales figures.

Also the recent announcement of Android based tablet device from some of the technology vendors like Samsung and LG gave further boost to company’s music store vision. The music industry hopes to benefit from a battle for control of the mobile phone and computer desktop between Apple and Google as both technology giants go head-to-head in a wide range of media and consumer technology areas including online TV and movies, mobile phones, software and even advertising.

However, it’s going to be an uphill task for Google to pull down master of the mobile music store. Apple has dominated mobile music store for for last 7 years through iTune Music store, which accounts for 70% of all US digital sales. On the other hand, at global level scenario is different for both the companies as Android is a new player with nothing to lose, Apple still don’t hold strong market share outside US and UK. Therefore Android have a clear advantage at global level due to availability of Android based phones in all the countries through multiple mobile manufacturer like Like, Samsung, LG etc.

Google has yet to sign any licensing deals with major labels, these people say, but it hasn’t stopped the labels getting excited about the prospect of its entry to the business and what competition with iTunes could mean for the industry.

“Google has a wealth of data, from YouTube, as well as from search, that can inform on what people are consuming and looking for music wise,” said Simon Wheeler, head of digital at London-based independent music company Beggars Banquet.

Connected devices like Apple’s iPhone and iPads or Google’s range of Android-based phones will be the next battlefield for music, say various industry watchers.