very poor quality of audio recorded on my droidx using MediaRecorder, why?

my project requires me to be able to record audio on an android device. i implemented solution using the MediaRecorder() but the recorded audio is in a terrible quality. what am i doing wrong? i must think that this cant be the only way to record audio :) perhaps i am doing something wrong, i am including my code below. please point me to the right direction.

thanks!

MediaRecorder recorder = new MediaRecorder();
File outputFile = new File(Environment.getExternalStorageDirectory(), "audio.3gp");
recorder.setAudioSource(MediaRecorder.AudioSource.MIC);
recorder.setOutputFormat(MediaRecorder.OutputFormat.RAW_AMR);
recorder.setAudioEncoder(MediaRecorder.AudioEncoder.AMR_NB);
recorder.setOutputFile(outputFile.getAbsolutePath());
recorder.prepare();
recorder.start();
// stop
recorder.stop();
recorder.reset(); 
recorder.release();