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Adobe and ARM have announced they are working together to optimize Flash Player 10 and Adobe AIR to run on ARM powered devices.

Adobe Systems Incorporated (Nasdaq:ADBE) and ARM [(LSE:ARM); (Nasdaq:ARMH)] today announced a technology collaboration to optimize and enable Adobe® Flash® Player 10 and Adobe AIR™ for ARM Powered® devices, ranging from mobile phones to set-top boxes, mobile Internet devices, televisions, automotive platforms, personal media players and other mobile computing devices. The collaboration is expected to accelerate mobile graphics and video capabilities on ARM platforms to bring rich Internet applications and Web services to mobile devices and consumer electronics worldwide.

This is extremely interesting, because the iPhone is powered by the ARM11 processor. Steve Jobs previously claimed the iPhone is not capable of running a full version of flash. It is possible, though, that the version Adobe and ARM release may be stripped down or more lightweight.

Not only would this enable support for the iPhone, it could also enable support for other ARM powered devices such as BlackBerrys, which would be another big market for Adobe.

The other big component of this is Adobe AIR support on these devices, which would allow developers a near one click solution for creating iPhone applications from existing Adobe AIR based applications.

Via[Adobe PR]