As one might expect from a speaker this small, it doesn't sound all that good. But it also doesn't sound terrible and manages to belt out tunes with unexpected gusto, though--not surprisingly--it does better with lighter fare and less bass-heavy material.
We ran some Kings of Leon tunes through the Orbit and it did OK. As we said in our earlier review of the Orbit iM237, while there isn't much bass, it isn't completely absent, which is all you can ask. It also sounds fine with movies (we streamed some stuff from Hulu).
Altec recommends that you adjust the volume on the source device from 85 percent to 90 percent of maximum and turn off any bass enhancement or EQ settings. We'd disagree on the first part, and suggest that the key thing is not to crank the volume too much or you'll be greeted with some distortion. (Volume settings are strictly at the source; the Orbit itself has no built-in volume control.)
It's worth noting that the sound does seem slightly better with this model. Maybe it's the straight digital connection via USB or the way you can angle the speaker with the kickstand, but things sounded slightly improved versus earlier models. Of course, the key is that it produces better--and louder--sound than what most built-in laptop speakers can deliver.