Apple to Launch Online Music Cloud Service: Sources (AAPL)

Apple AAPL will launch an online music cloud service in the near future, people familiar with the matter said. The service, for use through the company's proprietary iTunes software, would allow users to access their digital songs on the "cloud." Two people who withheld their names to maintain professional ties said that users would be able to listen to all of their songs as long as an internet connection is available. An Apple spokesman declined to comment. Apple previously told shareholders that a data center in North Carolina was to be opened this Spring for iTunes and MobileMe services. Some argue that this is the company's new "cloud" server warehouse. According to a Reuters report, "The maker of the wildly popular iPhone and iPod, Apple has yet to sign any new licenses for the service and major music labels are hoping to secure deals before the service is launched, three of the sources said. Apple has not told its music partners of when it intends to introduce its music locker, they said." It has yet to be determined whether consumers would respond to a cloud system where physical control over music libraries is taken away. Still, it cannot be ignored that Apple has been enormously successful in attracting and maintaining a cash-heavy customer base. A reasonably-priced model could intrigue many customers to join, which would materially affect Apple revenues. Shares of Apple are higher by $0.25 in Thursday after-hours trade, to $350.95.