Adobe's Shantanu Narayen in an interview with Bloomberg, confirmed the company is working with Apple to bring Flash to the iPhone. "It’s a hard technical challenge, and that’s part of the reason Apple and Adobe are collaborating," he says. "The ball is in our court. The onus is on us to deliver."

Adobe's Flash for desktops is processor intensive and Apple's CEO Steve Jobs spoke last year about the limited capabilities of Flash Lite saying it was "not capable of being used with the web". Jobs went on to say, "there's this missing product in the middle". 

Today's report sounds as if both companies are working on that middle ground and that's good news for everyone.

via AppleInsider