It's been well known that Apple has resisted bringing Adobe's Flash plug-in to the iPhone. As a result, there is no way for iPhone users to play Flash content natively on their iPhone. Many games (such as Canabalt) have been written in Flash, and ports of these applications have been big sellers on the App Store.
Today Adobe announced that they begin allowing Flash developers to export applications directly in "ipa" format to run directly on the iPhone. According to Adobe, these applications are compiled into standard native iPhone executables and will be able to be submitted to the App Store for approval.
Flash Professional CS5 will enable developers to build applications for iPhone that are installed as native applications. Users will be able to access the apps after downloading them from Apple’s App Store and installing them on iPhone or iPod touch
The implications for iPhone gamers and developers is pretty significant, as the porting of Flash content to the iPhone will become much easier. Obviously, changes may still need to be made to suit the iPhone's interface.
Several apps have already been released for the iPhone using an early private version of Adobe's software, but a public beta of Flash Professional CS5 will begin later this year. These early Flash/App Store examples include Chroma Circuit [$0.99], Fickleblox [$0.99] and more.