When Apple introduced the iPhone we all were shocked when Steve Jobs gave Adobe’s Flash a Zero in performance, letting out all the possibilities of a release any day of Adobe most used technology all over the net.

Adobe responded with a poor PR stunt letting people knows that they are working to fix Flash performance to meet Steve Jobs’s iPhone guidelines, but the real issue here is not about performance, it is more a business decision than a technology problem, here the 2 possible problems facing Apple and Adobe:

1. Adobe Flash + AIR SDK + FLEX SDK
With the introduction of Adobe Flash technology to the iPhone Apple will gain million of new web applications, something that will drive more and more people to the platform and if Adobe ports its AIR SDK technology to iphone developers, this could accelerate the business application development even more. Adobe will win while Apple will extend its dominance on the mobile platform, but the real winner is Adobe here, because Apple will depend on Adobe’s Flash for development of shiny new applications, something that brings us to the second issue.

2. Adobe Flash = Apple AppStore irrelevant
By the time Flash hits the iPhone platform and Adobe provides its developers technology that helps Apple extends its mobile business to a broader audience, by this same time the Apple AppStore will lose its relevance, Flash is a internet based technology, so if you want to enjoy more of flash you will always need a browser and if those applications can be embedded into a web browsers there is not need for developers to require Apple control on how their applications behave. Apple will lose the total control of the application development on the platform and this will face both companies. Apple wants to be who controls the iPhone platform, a business decision that users and developers could see as a Monopoly by Apple. But it will be difficult task for Apple to authorize millions of websites to have their pages able to run on the iPhone plus thousand of AIR based applications that will have to be verified and authoized, it will mean tweaking those applications to make them run only on the iPhone, something against Flash intention, write once run everywhere.

But wait, for years Apple has been dependable on Adobe for graphic applications and while Adobe has provided those applications to the platform, it has been after providing Windows versions first, even worse there are Adobe products only available for Windows (Adobe Photoshop 64-bit, Adobe’s John Nack).

Apple lose the control of graphic applications on the mac and doesn’t plan to give it away in the iPhone and as things go by, Flash hasn’t been decisive on the iPhone success, something that makes Apple happier.

Will we see Flash on the iPhone, could be, but first Adobe will have to guarantee Apple the continue stream of cash and that the control of how an application behave is on Apple side not on Adobe.