It absolutely is compressed (think about it, if it were not, it would be the same size as the original) BUT..every bit which is removed is replaced when it is played back unlike lossy compression inwhich files never return to the original state and are forever molested.Agreed. My bad in not stating myself better. There is compression where data is stripped and gone forever, which I believe is most peoples view of compression, and then there is "compression" whereby the data is stored in a manner that takes less space to store yet all the information is still fully there, such as Apple Lossless.
So why might there be a difference in sound? The most obvious reason would be the increased processing which needs to be performed on the file in order to restore it to the original uncompressed format.
It is subtle but...
This is where I believe some "may" get differing results from another and all the debates. Where not every system performs this processing the same, some gear may process the Apple Lossless back better than others. (This is purely speculation on my part.)
I suggest you perform a head to head test and determine for yourself.I have and heard no difference. This is what causes all the debates. Those that hear a difference speculate that those who don't have a system that can't resolve it and those that don't hear any differnce specualte why others believe they do.
There is a lot to digital and after all these years there are still things being learned.
Here is something I took from the B&W site:
What is lossless?
Lossless audio files have not been subject to data compression such as mp3, which reduces file sizes by omitting significant quantities of information about the recorded sound. As such the sound quality is identical to that of a commercial CD.
What is Apple Lossless Compression?
Apple Lossless Compression (ALC) reduces the file size of music without skipping any sound information. When the audio is played back from ALC format it is re-encoded to WAV, which is the file format that CDs store music as.