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Tensions have been running high recently between Apple, Inc. and Adobe Systems, Inc. over the Internet browsing capabilities of the iPhone. Because the iPhone’s web browser is incompatible with Flash Player (the web video streaming technology produced by Adobe), iPhone users have been unable to access nearly all videos currently being streamed on the web. According to a recent article published by the Wall Street Journal, this has adversely affected Apple shares, as many analysts believe that the iPhone’s inability to stream videos is one of the most cited negative features that turn buyers away from the product. According to Apple, current versions of Flash Player are either too slow to be used with the iPhone or too inadequate to be used to access the Internet via the hand-held device. Some reports suggest that Flash drains too much battery life to be feasible for mobile internet use. To date, Apple has yet to incorporate a version of Flash into their iPhones.

This latest incident has added to the strain on the relationship between Apple and Adobe, two companies which at one time were very much reliant upon one another. However, in recent years, the two companies have a history of strained relations. As the Wall Street Journal article points out, “Several years ago, Adobe dropped support for Apple’s Macintosh computers and then introduced other software products that were only compatible with Microsoft Corp. software. Then, Apple made some product changes affecting the distribution of Adobe’s software products.” Given the mounting tensions between these two companies, it seems like the iPhone might be the proverbial straw that breaks the camel’s back. Rumors have already begun circulating about Apple potentially contracting with another company to provide this web service (Sun Microsystems and their JavaFX platform being the front runner here), and there has also be speculation that Apple is working on developing its own technology.

However, there have been recent reports that Adobe is planning a version of Flash Player for the iPhone. Some may wonder why, considering the current tensions with Apple and the apparent public snub. However, several industry experts believe that it may be because their working relationship is one-sided, favoring Apple. According to one source, “Adobe has tipped its hand, and it now seems clear that it needs Apple’s iPhone more than Apple needs Adobe’s Flash. But it’s not at all clear that Adobe will get the foothold on the device it seems to want so badly.” Many experts agree with this sentiment, and fear that despite its best efforts, Adobe may be left out of the iPhone glory if and when Apple decides to go in another direction.

One thing is clear here: there is a definite strain on the relationship between Apple and Adobe, and both companies are getting hit by consumers. iPhone sales have suffered, and Adobe is losing an opportunity to expand into the mobile market. Whether or not the two will partner with the iPhone or on some future venture remains to be seen, but what happens next with the iPhone will definitely set the tone for the future relationship of these two business entities.

Tuesday, April 1st, 2008 You can skip to the end and leave a response. Pinging is currently not allowed.

By Michael Gorvin