Adobe Still Trying To Dial Up Smart Phones
March 16 2009 - 2:35PM
Dow Jones News
Adobe System Inc.'s (ADBE) Flash digital media player still
hasn't dialed in most of the world's top smart phones.
Though a big hit on PCs, Adobe's video player isn't yet
compatible with devices from Research In Motion Ltd. (RIM), Apple
Inc.'s (AAPL) iPhone and phones based on Google Inc.'s (GOOG)
Android software. The Palm Inc. (PALM) Pre, due in June in the
U.S., also isn't Flash compatible.
Microsoft Corp. (MSFT) continued the pile-on last week, when it
said an upcoming mobile version of its Windows operating system
software won't be compatible in the short term, and that its
Windows Marketplace for Mobile online software bazaar won't offer
any Flash-based products. Apple is to update its iPhone software on
Tuesday, and by all appearances, it still won't be compatible with
the Adobe feature.
The one success has been No. 1 cell phone maker Nokia (NOK).
While it says a billion Nokia cell phones are now Flash-compatible,
many are cell phones, rather than their souped-up cousins the smart
phone.
Adobe's woes mean a version of an important product isn't yet
being embraced by companies catering to the growing preference for
mobile computing, whether it's smart phones that mimic features
found on PCs, or ultra-small netbook computers that fit in a pants
pocket. The longer Adobe takes, the more it's becoming irrelevant
to mobile computing, and ceding ground and market share, to
Microsoft and other media player providers.
A company representative didn't respond to repeated requests for
comment. At a major cell phone trade show in Barcelona in February,
Adobe executives said they intend to release the first Flash
multi-media player for smart phones sometime this year. In
particular, Adobe has optimized Flash's performance for CPU chips
used by the iPhone, and one in the upcoming Pre.
The issues are partly Adobe's fault, said Forrester Research
analyst Jeff Hammond. Adobe initially targeted a stripped-down
version of Flash, Flash Lite For, a first-generation smart phone
that struggled to run the resource-heavy full version of the
software. It then began developing a smart phone version of its
Flash player too late, which let rivals software makers create
demand for alternative products. That poses a risk of Flash being
marginalized.
But the game isn't over for Adobe, Hammond said. Microsoft, for
instance, prefers to push its own Web video standard Silverlight
over Flash. But the company would also support Flash if it thinks
it's a competitive advantage.
"This is a game of 'the enemy of my enemy is my friend',"
Hammond said.
Google is among the most promising opportunities for Adobe, thus
giving someone looking for an end to the standoff a glimmer of
hope. Spokeswoman Carolyn Penner said the company is working
alongside Adobe to bring Flash technology to Android. "But we don't
have anything to announce at this time," she said.
Android could be key.
"If Adobe gets a really great version of Flash onto Android,
they could still really turn this around," Forrester's Hammond
said.
Adobe shares were recently trading up 0.3% to $18.61.
-By Ben Charny, Dow Jones Newswires; 415-765-8230;
ben.charny@dowjones; and Jessica Hodgson, Dow Jones Newswires;
415-439-6455; jessica.hodgson@dowjones.com