Steve Jobs has said that MobileMe launched too soon and was "not up to Apple's standards".
The admission comes in an internal email sent to Apple employees that says the service was flawed, the launch could have been handled better and it needed more time and testing.
In the email, seen by Ars Technica, Jobs states: "It was a mistake to launch MobileMe at the same time as iPhone 3G, iPhone 2.0 software and the App Store. We all had more than enough to do, and MobileMe could have been delayed without consequence".
The MobileMe team at Apple has seen re-organisation with Eddy Cue taking on the management of the service, as well as overseeing iTunes and the App Store.
"The MobileMe launch clearly demonstrates that we have more to learn about internet services", Jobs says.
"And learn we will. The vision of MobileMe is both exciting and ambitious, and we will press on to make it a service we are all proud of by the end of this year."