Adobe might continue to boast about Flash and the importance it has on both desktop and mobile devices, but there’s no lying to investors, and the company is pretty blunt about the threat of the iPhone and iPad in the end-of-quarter Form 10-Q it just filed with the Securities and Exchange Commission. It flatly says that “to the extent new releases of operating systems or other third-party products, platforms or devices, such as the Apple iPhone or iPad, make it more difficult for our products to perform, and our customers are persuaded to use alternative technologies, our business could be harmed.”
The company now has to make gloomy statements in it’s SEC filings – also saying that slow PC sales or a failure to keep up with desktop OS development could also harm its business. The timing is not a surprise here, since just yesterday Apple changed the iPhone OS 4 SDK agreement to block devs from using the upcoming Flash CS5 iPhone cross-compiler to build iPhone apps. What’s more is that Apple is also using HTML5 for its new iAd platform, which could potentially undo Flash’s stranglehold on online advertising as well. With all that as well as the recent push for HTML5 video across the web and from Microsoft (who is implementing HTML5 videos in their upcoming IE9) – Adobe’s business could be harmed, atleast a little. Hopefully the final version of Flash Player 10.1 is everything we’d hope for and dreamed of, Adobe’s going to have to make a real stand here otherwise they might end up in a situation similar to Palm’s.

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