With us or against us

Apple: You're either with us or against us. That appears to be the message from Steve Jobs to makers of software applications on Apple's popular iPhone gadget if the company's latest skirmish with Adobe is any guide. Jobs enumerated the reasons why he's blocking Adobe's Flash software on iPhones and iPads. Some sound reasonable. Naturally, having a key product banned from a potentially huge market has hit Adobe - its shares have fallen 6 per cent as the dispute escalated this week. Apple's market value, in contrast, has remained largely steady. Yet, even with Apple's momentum in the handset business, it's a risky ploy.

Flash is a widely used standard in videos and advertising on the Web. Tellingly, Jobs' defense of his position came out the day before the release of Apple's latest iPad with fast 3G wireless connections. It seems natural these customers want to watch lots of video.

Some of his argument is straightforward. Flash drains batteries quickly on Apple devices, and the software has a reputation for bugs and security flaws. Other claims, such as a new alternative format for video being available (even if it isn't widely used) and the idea that Adobe's software is "closed", seem disingenuous.

But, Apple does not have a monopoly on handsets, so it can design devices and choose what runs on them however it pleases. And, its growing market share shows users seem happy enough with the arrangement. Apple's iPhone has 16.4 per cent of the global smart phone market according to Strategy Analytics, up from 11 per cent a year ago.

Which is why this appears more to be an indication of Apple throwing its increasing weight around. Jobs' biggest beef is that Flash allows third-party developers to create apps that can be used in multiple companies' handsets. In his view, this creates jack-of-all-trade software that runs poorly on all devices.

This decision may force many small developers to choose whether they want to make programs for Apple's devices or for rivals such as Google's Android or Research in Motion.

It's expensive to duplicate work. Many will undoubtedly pick Apple first - it has nearly five times as many apps available as closest rival Android. The more software bells and whistles a phone has, the more customers it can expect to attract. Yet, the smartphone market is quickly developing. If customers decide they want devices that run Adobe's software or developers prefer working with Google, Apple could lose what appears to be its nearly unstoppable head of steam - and suffer more than just a flash of regret.