According to a report Tuesday on ZDNet, the company is halting development on future mobile versions of Flash for Android and Research In Motion’s PlayBook, among other mobile operating systems.

“We will no longer adapt Flash Player for mobile devices to new browser, OS version or device configurations,” ZDNet quotes Adobe as telling developers. “Some of our source code licensees may opt to continue working on and releasing their own implementations. We will continue to support the current Android and PlayBook configurations with critical bug fixes and security updates.”

Instead, Adobe will focus on tools that allow Flash developers to create mobile apps by packaging their code to run on Adobe’s AIR platform, according to the report.

Adobe representatives were not immediately available for comment.

The move, if true, would be a major blow to Android device makers, who have long touted Flash compatibility as a key competitive advantage over Apple’s iPhone and iPad.

It would also mark a posthumous vindication for former Apple CEO Steve Jobs, who took a controversial stand by not supporting Flash on Apple’s mobile products.

Although Adobe managed to get Flash running on Android devices, as well as the PlayBook, the performance was typically slow and inconsistent even on devices that supported it.

The move comes amid a broader restructuring at Adobe, which announced earlier on Tuesday that it was cutting 750 jobs and resorting its priorities.

Adobe didn’t specifically call out this move, though it did say it was increasing its investment in HTML5, and “focusing Flash resources on delivering the most advanced PC web experiences, including gaming and premium video, as well as mobile apps.”

Our relationship with Apple is like a relationship in any marriage, good or bad. It’s an important relationship for both of us to maintain and make stronger, knowing that there are differences.”

–Former Adobe CEO Bruce Chizen, Sept. 2003

The iPhone doesn’t support Flash and according to Apple (AAPL) CEO Steve Jobs it’s not going to anytime soon.

In remarks during the company’s annual shareholder meeting yesterday, Jobs said Flash Lite, the mobile version of Adobe’s (ADBE) popular Flash Media Player, simply isn’t good enough for the iPhone. The device needs something more robust, but not so much so that it compromises its performance. Apparently, Flash Lite is insufficient, and the standard Flash player runs too slowly on the iPhone’s processor. Flash “performs too slow to be useful,” Jobs said. And Flash Lite “is not capable of being used with the Web. … There’s this missing product in the middle.”

“Too slow to be useful.” “Not capable of being used on the Web.” That’s a disparaging way of describing the products of a partner with whom you’ve had strained relations over the years, isn’t it. Certainly, it’s not the most diplomatic. But then Jobs isn’t exactly renowned for his diplomacy. As a recent profile of him Fortune explains, “Jobs himself judges the world in binary terms. Products, in his view, are ‘insanely great’ or ’shit.’ … Subordinates are geniuses or ‘bozos,’ indispensable or no longer relevant. People in his orbit regularly flip, at a second’s notice, from one category to another, in what early Apple colleagues came to call his ‘hero-shithead roller coaster.’”

So why take such a pot shot at Adobe in a public forum like this? Is Jobs telling the company to get its act together and develop an iPhone-specific Flash player, or is he suggesting that Apple itself might develop that “missing product in the middle”? Hmm. Perhaps it already has.

Our relationship with Apple is like a relationship in any marriage, good or bad. It’s an important relationship for both of us to maintain and make stronger, knowing that there are differences.”

–Former Adobe CEO Bruce Chizen, Sept. 2003

The iPhone doesn’t support Flash and according to Apple (AAPL) CEO Steve Jobs it’s not going to anytime soon.

In remarks during the company’s annual shareholder meeting yesterday, Jobs said Flash Lite, the mobile version of Adobe’s (ADBE) popular Flash Media Player, simply isn’t good enough for the iPhone. The device needs something more robust, but not so much so that it compromises its performance. Apparently, Flash Lite is insufficient, and the standard Flash player runs too slowly on the iPhone’s processor. Flash “performs too slow to be useful,” Jobs said. And Flash Lite “is not capable of being used with the Web. … There’s this missing product in the middle.”

“Too slow to be useful.” “Not capable of being used on the Web.” That’s a disparaging way of describing the products of a partner with whom you’ve had strained relations over the years, isn’t it. Certainly, it’s not the most diplomatic. But then Jobs isn’t exactly renowned for his diplomacy. As a recent profile of him Fortune explains, “Jobs himself judges the world in binary terms. Products, in his view, are ‘insanely great’ or ’shit.’ … Subordinates are geniuses or ‘bozos,’ indispensable or no longer relevant. People in his orbit regularly flip, at a second’s notice, from one category to another, in what early Apple colleagues came to call his ‘hero-shithead roller coaster.’”

So why take such a pot shot at Adobe in a public forum like this? Is Jobs telling the company to get its act together and develop an iPhone-specific Flash player, or is he suggesting that Apple itself might develop that “missing product in the middle”? Hmm. Perhaps it already has.