The Musicola E40-10 used a mechanism that was similar to the American produced AMI model C. It was housed in a similar cabinet to the M12-10C undergoing cosmetic changes such as buttoned upholstery and a new 40 push button selector panel covering the entire faceplate. The faceplate had pricing and selection instructions as well as advertising current & popular hits, classical & old favourites.

It featured an upgraded mono amplifier with larger input and output transformers improving the sound reproduction being delivered by either a 12" Magnavox, MSP Alcoman or Rola speaker located in the front of the cabinet. The perspex louvres were again backlit by two fluorescent lamps illuminating coloured plastics.

The mechanism consisted of a record rack holding twenty 10" records traveling left to right with a stationary turntable. Earlier models used a tonearm again featuring a thumbscrew cartridge that used a sapphire tipped steel needle whilst later models had a lightweight tone arm using a Ronette cartridge and sapphire stylus. Unfortunately the mechanism suffered from overheating problems due to the poor quality of the motors which were used in the transfer mechanism.This in time would cause the machine to be perceived as unreliable.

These were also retrofitted to play 7" 45rpm records by two methods. One involved replacing the record rack, transfer arm and turntable.The turntable was replaced with a Collaro turntable unit as pictured. Models were then rebadged as C/U meaning converted unit, whilst others were fitted with 10" vinyl plates that supported 7" 45's. A brass collar was then fitted to the drive spindle of the turntable enabling it to spin at 45rpm. The serial numbering for these machines began in the 1000's.

The Musicola E40/10 with Serial Number #1015, from Frog's collection, was donated in 2014 to the Powerhouse Museum in Sydney. The unrestored E40/10 with Serial Number #1028 was sold.