Adobe calls this task "a challenge", “It’s a hard technical challenge, and that’s part of the reason Apple and Adobe are collaborating,” Narayen (Adobe CEO) said today in a Bloomberg Television interview from the World Economic Forum in Davos, Switzerland. “The ball is in our court. The onus is on us to deliver.”
Most Flash Lite implementations actually depend on an app that runs entirely outside of the web browser and are often based on older versions of Flash that limit their performance and feature set; Jobs has argued for a "product in the middle" that does more.
Whether or not the collaborative process involves working on that app is very much a mystery, but it may be necessary for Flash to appear in Apple's preferred form, as third-party iPhone apps aren't allowed to serve as plugins based on the iPhone SDK's guidelines.
And in the meantime, the cellphone maker has publicly advocated HTML 5 as a replacement and is collaborating with fellow browser developers Mozilla and Opera to perform many of the same functions of Flash but in a more universal and less resource-hungry standard.
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