In an announcement on developer.apple.com, Apple states that "As of the release of Java for Mac OS X 10.6 Update 3, the version of Java that is ported by Apple, and that ships with Mac OS X, is deprecated." It now seems likely that OS X 10.7 will not have a Java install built into the OS .
This is not all that surprising. In the early days of OS X, Apple were keen on Java, supporting it as a full-fledged alternative to Objective C for application development. Over the years, though, Apple's enthusiasm waned; we saw longer and longer gaps between updates and an official discontuation of the Java-Cocoa bridge in 2006. Client-side Java on