UPDATE 1-Adobe says Flash gaining in smartphone market

* Adobe sees Flash on over 250 mln smartphones by 2012-end

* Sees Flash on over 53 pct of smartphones shipped in 2012

(Adds background, details, comments from Adobe)

By Sue Zeidler

SAN FRANCISCO, June 9 (BestGrowthStock) – Adobe Systems Inc
(ADBE.O: ) on Wednesday said it sees its popular Flash Player on
more than 250 million smartphones by the end of 2012 despite
Apple Inc (Read more about Apple stock future.)’s (AAPL.O: ) ban on developers from using the popular
multimedia software on its iPhone.

The feud between Apple and Adobe has emerged as the market
for smartphones heats up.

Adobe said on Wednesday it has long provided a scaled-down
version of its Flash software for cellphones that are less
powerful than the new generation of smartphones which enable
consumers to surf the full Web and watch videos and rich media.

Apple’s Chief Executive Steve Jobs has sharply criticized
Flash, calling it unreliable and ill-suited for mobile devices
such as the iPhone and iPad, raising questions about its
security and power-management.

But Adobe said its newest Flash version was gaining
traction with smartphone makers in spite of Apple’s
resistance.

“Maybe we don’t get to the iPhone or iPad,” Anup Murarka,
director of technology strategy, told Reuters in an interview,
but added: “If anything, we’re seeing continued growth in the
install base and the usage of Flash and we see that continuing
to grow,” he said.

By predicting its Flash Player would be in over 250 million
smartphones by the end of 2012, Adobe said it expects its Flash
software to be supported in 53 per cent of the more than 300
million smartphones expected to ship in 2012.

Industry analysts predict more than 200 million smartphones
to be sold in 2010, with close to 10 percent of those carrying
Flash.

Adobe’s newest Flash Player 10.1 will soon be available on
Google’s (GOOG.O: ) Android “Froyo” 2.2 operating system for
smartphones and other devices, and Adobe’s Murarka said other
smartphones would soon support Flash.

“You’re going to see Flash not only on Android. Consumers
will see devices from Palm (PALM.O: ), Research in Motion Ltd’s
(RIM.TO: ) Blackberry, Nokia’s (NOK1V.HE: ) Symbian and Microsoft
(MSFT.O: ) Windows Phone 7 support the full Flash Player,”
Murarka said.

Murarka said Flash was a strong contributor to Adobe’s
bottom line. “The player itself is free, but the Flash platform
is a contributor to revenues. We monetize it via the tools we
sell, and by far the biggest aspect of Adobes’ revenues is
tools,” he said.

Adobe’s Flash player falls under its platform business unit,
which generated $46.6 million in the first quarter ended in
late February, or about 6 percent of Adobe’s total revenue in
the first quarter.

Al Hilwa, analyst at IDC, said Adobe was the leader in the
web design and development market, which totalled $850 million
overall in 2009. Web design and develpment is part of the
overall application development software market, which totalled
$5.9 billion in 2009.

“In a scenario where Flash was to somehow see less usage, we
expect Adobe’s tools to continue to be used, and certainly
their authoring and publishing tools like Photoshop to continue
to be universally used for digital assets no matter what the
development model is downstream,” Hilwa said.

But he said developers were watching the Apple/Adobe feud
closely to see if it would ultimately make applications more
expensive to monetize if they have to re-learn new tools and
implement each application from scratch in each mobile
platform’s native environment.

Stock Report

(Editing by Valerie Lee)

UPDATE 1-Adobe says Flash gaining in smartphone market