Earlier this month Apple changed their SDK licensing terms to restrict applications built upon third party compilers and languages for the app store, of which includes Adobe's popular Flash CS5.
Mike Chambers whom is the Principal Product Manager for Flash said that Apple's store policies are so stringent that they could even get away with rejecting or restricting development of any applications as well as removing existing ones from the App Store at any time without having to justify why.
As a result of this, Adobe has announced that they are ceasing any future Flash CS5 development for the iPhone and are now focusing their attention on Google's Android and Mike Chambers' team has already been working closely with Google to ship Flash Player 10.1 and Adobe AIR 2.0 later this year on phones and tablets; both of which are currently in private testing phase but will be made available as a public beta soon.
More details at the source.
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