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Adobe’s Narayen Says Flash on IPhone Is a Challenge

Adobe Systems Inc. faces a challenge in creating a version of its Flash video software for Apple Inc.’s iPhone, Chief Executive Officer Shantanu Narayen said.

“It’s a hard technical challenge, and that’s part of the reason Apple and Adobe are collaborating,” Narayen 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.”

Adobe’s Flash, used to view online video and animation, is installed on 98 percent of the world’s personal computers. While the software is on more than 800 million handsets, it isn’t available on the iPhone. Apple CEO Steve Jobs said last March that Flash runs too slowly for the iPhone, and a slimmed-down version, called Flash Lite, “isn’t capable enough to be used with the Web.”

Jobs called on Adobe to write a third version of Flash, in addition to the software already available for PCs and phones.

Adobe, based in San Jose, California, fell 74 cents to $19.31 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares declined 50 percent last year.

Economic ‘Funk’

Spending on information technology will help the global economy pull out of the recession, Narayen said.

“In the short run, there’s limited visibility in technology spending,” he said. “But when we look at the macro spending, we think tech spend will be one of the ways we get out of this funk.”

Technology spending has changed in the economic slowdown, Narayen said. Companies’ chief information officers want products that will help them quickly cut overall costs. “You have to show a return on investment,” said Narayen. “That’s where CIOs are looking.”

Adobe is facing a new challenge in the mobile-video market from Microsoft Corp., the world’s largest software maker. The Redmond, Washington-based company is trying to persuade more Web-site owners to use its Silverlight in place of Flash. Microsoft introduced Silverlight in 2007.

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