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Adobe aims to grow Flash, Reader on mobiles

Posted by inet - 2006-03-12

Design software maker Adobe Systems Inc. expects to see increasing revenues from the sale of its flagship products for use on mobile phones, its president and chief operating officer said on Thursday.
"We expect mobile to increasingly contribute to the company," Shantanu Narayen told Reuters in an interview in Finland where he visited clients such as Nokia.

Adobe, known for its Acrobat document sharing and, after its Macromedia acquisition last year, for Flash animation software, expects to increase penetration of its products in mobile phones through sales to handset makers and telecoms operators, he said.

"We certainly like to believe that as rich media is being consumed more on these devices ... that both Flash and Reader become essential part of these devices ... We are vigilant to make it happen," Narayen said.

Flash and Reader software are currently available mostly on top-end phones, but Narayen said the company was aiming also to have it in the cheaper products.

"As the number of devices and smarter devices increase, you see a lot of penetration ... but it's early in that space. There are a billion people in India and China who are never going to use PC to access the Internet. I think opportunity is huge," he said.

Adobe closed its $3.4 billion acquisition of Macromedia in December in a deal aimed at tightening its grip over how publishers, advertisers and ordinary Web users create and distribute electronic documents.

Narayen said the integration of the Macromedia business had started well, with both management and product integration.

"We have been able not just to present combined strategy but also to execute against that strategy. It's off to a great start," he said.

"The integration is not done ... but I'd like to believe that most of the heavy lifting is behind us."

Analysts and investors say the deal is a good fit, because Adobe's strength is in editing and distributing static content such as text, photos, or graphics, while Macromedia is a leader in animation tools for creating Web graphics and advertising.

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