Adobe CEO Reports 'Muted' Effect of Apple's Relaxing of App Store Rules on Product Sales

110511 box flash cs5 150x150

The Wall Street Journal reports on comments from Adobe CEO Shantanu Narayen made during the company's earnings conference call indicating that Apple's recent decision to relax restrictions on third-party development tools for iOS app creation has had only a "muted" effect on Adobe product sales.

Narayen said in June the public squabble with Apple had not hurt sales of the company's software packages. But there was no denying that it had hurt the company's share price, which started the year around $37 but in June dropped below $27.

Earlier this month, Apple relaxed restrictions on developers of applications for its iPhones and iPads, opening up its popular App Store to products written in Flash.

However, the short-term impact of the change on product sales "was muted," Narayen said.

Adobe included in its new Flash Professional CS5 a feature known as "Packager for iPhone" that allowed developers to export Flash content in an iOS-compatible format to allow them to easily port their Flash apps for submission to the App Store. Just prior to the Adobe's product release, however, Apple modified its developer terms to ban such third-party development tools from being used for App Store submissions.

With Apple now lifting the restrictions, developers are free to use the existing Packager for iPhone feature and Adobe has said that it will resume work on the feature for future updates.

Despite strong performance during the previous quarter, Adobe's earnings guidance for the upcoming quarter fell below analysts' and investors' expectations, and the stock is down 20% today in response.

Popular Stories

m5 macbook pro deal

Why You Shouldn't Buy the Next MacBook Pro

Tuesday February 10, 2026 4:27 pm PST by
Apple is planning to launch new MacBook Pro models as soon as early March, but if you can, this is one generation you should skip because there's something much better in the works. We're waiting on 14-inch and 16-inch MacBook Pro models with M5 Pro and M5 Max chips, with few changes other than the processor upgrade. There won't be any tweaks to the design or the display, but later this...
iOS 26

Apple Releases iOS 26.3 and iPadOS 26.3

Wednesday February 11, 2026 10:07 am PST by
Apple today released iOS 26.3 and iPadOS 26.3, the latest updates to the iOS 26 and iPadOS 26 operating systems that came out in September. The new software comes almost two months after Apple released iOS 26.2 and iPadOS 26.2. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. According to Apple's release notes, ...
maxresdefault

Apple Shows Off a Key Reason to Upgrade to the iPhone 17

Saturday February 7, 2026 9:26 am PST by
Apple today shared an ad that shows how the upgraded Center Stage front camera on the latest iPhones improves the process of taking a group selfie. "Watch how the new front facing camera on iPhone 17 Pro takes group selfies that automatically expand and rotate as more people come into frame," says Apple. While the ad is focused on the iPhone 17 Pro and iPhone 17 Pro Max, the regular iPhone...
apple wallet drivers license feature iPhone 15 pro

Apple Says These 7 U.S. States Plan to Offer iPhone Driver's Licenses

Monday February 9, 2026 6:24 am PST by
In select U.S. states, residents can add their driver's license or state ID to the Apple Wallet app on the iPhone and Apple Watch, and then use it to display proof of identity or age at select airports and businesses, and in select apps. The feature is currently available in 13 U.S. states and Puerto Rico, and it is expected to launch in at least seven more in the future. To set up the...
Apple Logo Zoomed

Apple Expected to Launch These 10+ Products Over the Coming Months

Tuesday February 10, 2026 6:33 am PST by
It has been a slow start to 2026 for Apple product launches, with only a new AirTag and a special Apple Watch band released so far. We are still waiting for MacBook Pro models with M5 Pro and M5 Max chips, the iPhone 17e, a lower-cost MacBook with an iPhone chip, long-rumored updates to the Apple TV and HomePod mini, and much more. Apple is expected to release/update the following products...