Apple's Jobs Using ICloud to Dismantle the PC Industry He Helped Build

Apple Inc. Chief Executive OfficerSteve Jobs, by introducing a service that shares files acrossdifferent Internet-linked devices, takes another step towardsidelining the personal-computer industry he pioneered.

Jobs, who helped popularize home computers with the AppleII and the Mac in the 1970s and '80s, is counting on the newiCloud product to let users synchronize and access data on Appledevices and Windows PCs running iTunes.

The center of consumers' digitallives

Jobs aims to make Apple the center of consumers' digitallives, furthermore decreasing dependence on Microsoft Corp.'s once-dominant Windows software and Hewlett-Packard Co.'s market-leading PCs. With iCloud, files will be stored by Apple inremote data centers -- known as the "cloud" in technologyparlance -- and automatically synchronize. That means the samecontent is available from any Apple gadget, without itcluttering up users' hard drives.

"The PC will be the most visible casualty of the cloudrevolution," said Steve Perlman, a former Apple engineer andthe CEO of online game company OnLive Inc. "Apple knows it."

Apple is trying to parlay the success of the iPhone andiPad into the leading role in the "post-PC" era. Already,clients have bought 25 million iPad tablets, eating into PCsales. Both Microsoft and Hewlett-Packard disappointed investorswith their revenues last quarter, hurt in some cases by tabletsweighing on the industry.

In all, Apple has sold more than 200 million iOS devices, acategory that includes the iPad, iPhone and iPod Touch, theCupertino, California-based company said yesterday when itunveiled iCloud. Apple's App Store now has more than 425,000applications that work with iOS.

"We're going to demote the PC and the Mac to just be adevice -- just like an iPad, an iPhone or an iPod Touch," Jobs,dressed in a black sweater and jeans, said yesterday. "We'regoing to move the hub of your digital life to the cloud."

Apple recently completed a $1 billion data center in NorthCarolina that will serve as the backbone of the iCloud service.It will help devices synchronize calendar items, contacts, mail,iTunes songs, photos, apps and other files.

"If you don't think we're serious about this, you'rewrong," Jobs said during showing pictures of the data center.Yesterday's event marked Jobs's second public appearance of2011. Even though he has been on medical leave since Jan. 17, Jobsremains involved in Apple's decision making. His absence is thethird since 2004 as he copes with a rare form of cancer.

In racing to the cloud, Apple is competing with Amazon.comInc., the biggest online retailer, and Google Inc.'s Androidsoftware, which runs rival smartphones and tablet computers.

The top seller of e-books

Amazon is the top seller of e-books, and offers its owncloud service. Google's Android, in the meantime, runs smartphonesfrom Samsung Electronics Co., HTC Corp. and Motorola MobilityHoldings Inc. Android accounted for 36 percent of smartphonesales in the first quarter of 2011, compared with 17 percent foriPhone, according to Gartner Inc.

A major piece of Apple's effort to dislodge the PC iseliminating the need for clients to plug their devices into acomputer for updates. With the software upgrades announced byApple yesterday, devices will synchronize wirelessly. Forexample, a picture that's taken with an iPhone will becomeimmediately available to view on an iPad or Mac.

The various Internet services Jobs introduced will onlywork with Apple's mobile devices. That improves the chancecustomers will stay within its ecosystem of gadgets andservices, said Gene Munster, an analyst for Piper Jaffray Cos.in Minneapolis.

The same time

At the same time, Apple's closed approach presents anopportunity for rivals, including Google and online file-storageservice Dropbox Inc., said Marc Benioff, CEO of Salesforce.comInc. in San Francisco, which offers cloud services tobusinesses. Those competitors can offer services that will workwith different platforms, not just Apple's, he said.

Apple fell $5.40, or 1.6 percent, to $338.04 yesterday onthe Nasdaq Stock Market, mirroring a broader decline in themarkets. The shares have climbed 4.8 percent this year.

As part of iCloud, Apple introduced a $24.99 music featurecalled iTunes Match that will scan every song in users'libraries and match it with a copy in the cloud. That meanscustomers don't have to upload all their music song by song -- arequirement on services introduced by Google and Amazon.

ICloud will be available as a free download when Applereleases the new version of iOS this fall. The feature willinclude 5 gigabytes of free storage for users' files, plusunlimited room for purchased apps and books, and recent photos.

New Twitter Inc

A new Twitter Inc. partnership will help users access thesocial-networking service and post photos. And a feature calledNewsstand lets clients purchase and organize newspaper andmagazine subscriptions for the iPad and iPhone.

Apple as well is adding 250 new features to the Mac OS X Lionsoftware, including more touch-control options and a servicecalled AirDrop that shares files over Wi-Fi. The Lion operatingsystem will be available for downloading in July for $29.99.