To: cirrus who wrote (186055 ) 2/2/2010 5:55:50 PM From: stockman_scott Respond to of 361700 Adobe Says IPhone Risks Losing Customers Without Flash Software By Rochelle Garner Feb. 2 (Bloomberg) -- Adobe Systems Inc., trying to get its Flash software onto Apple Inc. devices, said the iPhone risks losing market share because it’s the only smartphone that doesn’t support Adobe’s Flash video software. More than 75 percent of Web video relies on Flash, depriving iPhone customers of that content, said Kevin Lynch, Adobe’s chief technical officer. Apple’s new iPad tablet computer, announced last week, also doesn’t support Flash. “People will start to see that as a capability they’d like to have and not understand why it’s not there,” Lynch said today in an interview. “It will become a competitive differentiator in that market, in terms of being able to view Flash content and Web sites or not.” Apple Chief Executive Officer Steve Jobs is promoting a standard called HTML5, rather than Flash, said James McQuivey, an analyst with Forrester Research Inc. in Boston. HTML5 is the next version of the HTML language, which controls how Web pages present information. Adobe says that standard won’t be able to replace Flash in showing Web video and animation. “It’s clear that Apple doesn’t want to strengthen Adobe’s position in the market,” McQuivey said. “Apple has been very public in supporting HTML5, and yet the vast majority of videos online are in Flash. Still, Apple has an almost hypnotic ability to satisfy its customers, even without Flash.” Steve Dowling, a spokesman for Cupertino, California-based Apple, didn’t reply to a message seeking comment. ‘Dark Ages’ HTML5 won’t work the same way in different browsers, preventing it from being an alternative to Flash, Lynch said. “Users and content creators would be thrown back to the dark ages of video on the Web with incompatibility issues,” he said earlier today in a blog posting. Jobs said in March 2008 that Adobe’s Flash software is too slow to be useful on the iPhone and a mobile version of Flash isn’t powerful enough. At the time, he said he wanted Adobe to create a third version of Flash, with features that fall between the personal-computer edition and the mobile version. “We are ready to enable Flash in the browser on these devices if and when Apple chooses to allow that for its users, but to date we have not had the required cooperation from Apple to make this happen,” Adobe’s Lynch said. Adobe rose 50 cents to $32.98 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares advanced 73 percent last year. Apple, which more than doubled in value last year, gained $1.13 to $195.86. The Flash player, which can be downloaded for free, is installed on about 98 percent of Internet-connected PCs. San Jose, California-based Adobe makes money from the technology by selling programs that create Flash-based animation and video. “Apple needs to approve all software that goes on its devices, and today it has not yet approved Flash to run in the browser,” Lynch said. “I can’t philosophize why Apple chooses to do what it does.” To contact the reporter on this story: Rochelle Garner in San Francisco at rgarner4@bloomberg.net Last Updated: February 2, 2010 17:08 EST