Apple takes on Microsoft with Windows Web browser

By Scott Hillis

SAN FRANCISCO (Reuters) - Apple Inc. is introducing a version of its Safari Internet browser for Windows, Chief Executive Steve Jobs said on Monday, taking on Microsoft Corp. in its key stronghold of Web access software.

The move by Apple, which has expanded beyond its Macintosh computer core with iPod media players and the upcoming iPhone, could let the company control how large numbers of people use the Web at a time when services and programs are increasingly Internet-based.

Jobs also said Apple would let outside developers create applications for the iPhone by tapping Safari, softening the company's previous position that the device would not support other software due to security concerns.

But investors were disappointed that Jobs -- known for his surprise announcements -- did not have bigger news to unveil -- and Apple shares sank nearly 3.5 percent, their biggest one-day fall in about four months.

"Apple always hits a home run, and when they hit a triple, it's a disappointment," said Gene Munster, an analyst at Piper Jaffray & Co. who has an "outperform" rating on Apple stock.

Consumers and investors have been particularly hungry for any iPhone news ahead of the product's June 29 launch for use on AT&T's wireless network.

Apple shares fell $4.30 to close at $120.19 on Nasdaq. The stock has doubled over the past year and has risen 10 percent in the last month.

Speaking at Apple's annual developers' conference in San Francisco, Jobs put Microsoft's dominant Internet Explorer browser squarely in his sights, saying that test versions of the new Safari 3 were twice as fast at loading Web pages.