An article today from Computerworld quotes an analyst that says Apple should be worried about the new Google Android phone and Amazon’s MP3 music service.

Apple should certainly be worried,” said Aram Sinnreich, a media analyst at Radar Research. “It’s relied on the walled-garden approach with iTunes,” he added, talking about Apple’s locking the popular iPod to iTunes. “That’s OK, as long as no one knows their butt from their elbow.”

Calling the T-Mobile-Amazon partnership “a winning combination,” Sinnreich pointed out two reasons why he’s impressed with Amazon’s music store. “It’s gotten some real market share, and it’s really been an important force in moving the industry away from DRM,” he said.

Considering Apple iTune’s has a huge percentage of the online music market, and iPod’s have a large percentage of music players, why does it have to worry about Android and Amazon?

The short answer is DRM. Amazon’s music store sells songs without copy protection, whereas Apple mostly sells music using its DRM scheme. Apparently, DRM is not as popular as it was a few years ago. Consumers aren’t interested in being locked in to one particular music security system.

Another reason why Apple should be worried is price. Amazon prices singles at $0.89 compared to iTunes, which sells all singles for $0.99. Combine no DRM and lower prices, and Amazon may eat into iTunes’ sales.

However, Apple shouldn’t worry too much in the short-term. It’s going to take something monumental to dethrone Apple iTunes, iPods and iPhones. Amazon may gain some traction in the short-term, but a larger DRM-free movement among portable music players may be necessary.