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While there was much to praise about MobileMe, there were too many problems--both real and perceived--that ultimately doomed the service.



From PCWorld:
As Apple gets ready for the fall launch of iCloud, its brand new Internet service for Mac and Windows, it seems only right to mark (if not exactly mourn) the passing of MobileMe, one of the rare product flops Apple has seen in recent years. While there was much to praise about MobileMe, there were too many problems--both real and perceived--that ultimately doomed the service.

What went wrong with Apple's pioneering Web services infrastructure? Why did Apple feel that its only option was to demolish the MobileMe brand? In part, it was a simple matter of established pattern. As we saw with MobileMe's predecessors, iTools (2000-2002), and .Mac (2002-2008), when Apple is ready to move on, these services simply cease to exist. MobileMe is on the same path, despite its being granted an unprecedented year to wave goodbye.
  Why Apple Scrapped MobileMe for iCloud