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As Jobs put it Tuesday, Apple's iPhone, with all its cutting-edge mobile Internet trickery, needs something much better than the current Flash player that Adobe makes for cellphones...Based on Jobs' comments, it appears developers and investors will be disappointed Thursday, when some believed Apple would release iPhone software tools that could be used to add Flash to the iPhone.
CNN Money article [money.cnn.com]
If memory serves, the iPhone can use YouTube (which has a special non-Flash section).