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Much like all the companies who used to market their headphones as “MP3 compatible”.
It’s just more marketing nonsense.
in terms of mp3 players, it may not all be marketing nonsense, I found that out while researching ipods/mp3 players for a friend. Typically since they are decidicated audio devices, they support better quality g formats/codecs then typical phones, so being mp3 compatible means it supports those higher qualities. The higher quality will still play on phones but, you just don’t get that better quality.