Looks like finally it's possible, thanks to Flash CS5, it will be possible to create Apps for IPhone and IPod Touch with firmware 3.0 or higher.



Great news actually, I was getting tired of all that people telling me: "Hey why don't you learn some Unity, so you can make Apps for IPhone and be a millionaire in few days!!!".

The difference with Unity will be anyway visible, Flash requires more memory to run... but I guess for most of Apps and 2D games, Flash will do great.
For 3D stuff there is still a lot of work to do...

One important thing that many people didn't understand is that, it's not that IPhone will build another firmware that will be able to read Flash files; Flash CS5 will support a new kind of Output that will work on IPhone.
So the firmware of the Iphone is alwasy the same, Flash changes, infact this thing will be possibile only with Flash CS5.
That is why the Safari Browser will not support Flash anyway...
The beta should be released by the end of 2009, you can subscribe here to be notified when it will be ready.

While waiting, please read this interesting this Developer FAQ about Flash CS5 and Iphone.