A good news for flash developer, Adobe CS5 will let you develop iPhone & iPod touch Apps using ActionScript. These applications can be delivered to iPhone and iPod touch users through the Apple AppStore. Go through following link to view details
http://www.adobe.com/devnet/logged_in/abansod_iphone.html

Adobe is now considering smart phone market seriously and is actively focusing on making smart phone application development kit. You can watch application developed using CS5 here.