Skyfire, an app that converts Flash content to HTML5 via a Safari plugin therefore allowing Flash content to be viewed on iOS devices, was released in the App Store with a lot of hoopla yesterday. Five hours later, the app was showing as "Sold Out" on the App Store due to the overwhelming demand crushing Skyfire's servers.

Demand was expected to be high for the app, but not even Skyfire expected the rush of sales. In the amount of time the app was up, it became the App Store's #1 paid app. It seems $2.99 was chump change when it came to getting Flash content to the iPhone. To keep the user experience good for the app, Skyfire is throttling back the number of new purchases while they work "around the clock" on increasing server space. Skyfire plans to update via their Facebook and Twitter feeds when more info on availability comes.

Official Press Release: (courtesy of Engadget)

Skyfire Becomes Top Grossing iPhone App in App Store and Sells Out of Inventory in Five Hours

Historic demand forces mobile browser to halt new sales and expand server capacity within hours of availability

Mountain View - Skyfire, the first iPhone browser that plays video designed for Adobe Flash Player, is announcing that they have sold out of inventory within five hours of its public launch.

Skyfire for iPhone has been received with overwhelming enthusiasm -- far beyond internal projections. The result: the company is currently sold out of its first batch of Skyfire for the iPhone and is temporarily not accepting new purchases. The company is working to increase capacity and will be accepting new purchases from the Apple App StoreSM soon.

Skyfire is assuring users that the app's sold out status was a temporary measure taken by Skyfire, and was not the decision of Apple, Inc., which has approved the app.

The app, previously available in the Apple App StoreSM for $2.99, bridges one major gap between Apple and Adobe technologies, enabling consumers to view millions of previously unavailable videos designed for Flash Player on Apple iOS devices.

The company which became the top grossing app in iTunes today ahead of popular titles like Angry Birds, experienced overwhelming consumer demand for its browser within hours of going live. The company is no stranger to consumer demand of its products as its Android browser generated over one million downloads in its first few months.

"Skyfire has historically generated high demand for its browser products but nothing like this," states Skyfire CEO Jeffrey Glueck. "It was hard to predict consumer demand since this was our first paid app, but we were blown away by the demand and sales."

The company plans to open another batch of its iPhone application in the near future. It recommends interested customers follow the company on Twitter @skyfire or on Facebook at http://www.facebook.com/GetSkyfire.iPhone for the new availability batch.