Unless Apple is announcing something phenomenal involving Mobile Me at their announcement on June 6th, they just lost the lead in the battle for the cloud. Earlier today, Amazon announced the launch of a new service called the Cloud Player which is going to be powered in part by their proprietary Cloud Drive.
Amazon is making a pretty big bet on the cloud here and I think it is certainly the right one. If you watch the easy-to-understand cartoon video on their website, the problem they are providing a solution for is certainly one we can all relate to. The only problem Amazon faces right now is one of mind share (and market share but the latter is driven by the former).
According to an article on the LA Times blog, Amazon only accounts for 10-15% of digital music downloads whereas iTunes accounts for almost 70%. I can imagine that this is also primarily due to the fact that the iPod is the world's most popular music player, I don't need any stats to back that up. The question is... for how long more is that stat going to matter? A more concerning stat for Apple is the market share that Android is quickly gaining in the mobile space, not only in the US but around the world. With the growing power of mobile devices, will people want to carry more than one device anymore (i.e. an iPod and a phone)?
The adoption and evolution of this service is most certainly one to keep an eye on. As Android expands and Amazon deepens its platform experience... will the two forces eventually combine to beat Apple? Let the battle of the 3 A's begin...