The video below shows how the music sounds tinnier on Competitor 1's phone and on Competitor 2's phone, it sounds like a truck trying to back out of a mud hole! The volume was matched on all three devices so that this can be a fair comparison. In the end, you're paying for the phone so you will have to decide how important recording loud noises is when deciding which smartphone to buy. It's not an unreasonable demand to want a smartphone that captures video with good quality sound at high volumes. After all, some people decide which phone to buy based on celebrity endorsements ("Charles Barkley said to buy this model") or the box that the phone comes in.
source: Nokia via WPCentral