There have been several rumors around the web today that Adobe will no longer be developing Flash for mobile devices. These reports have proven to be true, as Adobe has posted on their own website confirming it. Apparently, this move will allow Adobe to focus on assisting with HTML5 development. They noted that they will continue to support the current Flash for mobile devices, but only for bug fixes and security updates. Also, this does not effect the PC side of things, and Adobe will continue to develop future versions of Flash for that platform. Here is a quote from their official statement,
Our future work with Flash on mobile devices will be focused on enabling Flash developers to package native apps with Adobe AIR for all the major app stores. We will no longer continue to develop Flash Player in the browser to work with new mobile device configurations (chipset, browser, OS version, etc.) following the upcoming release of Flash Player 11.1 for Android and BlackBerry PlayBook. We will of course continue to provide critical bug fixes and security updates for existing device configurations. We will also allow our source code licensees to continue working on and release their own implementations.

These changes will allow us to increase investment in HTML5 and innovate with Flash where it can have most impact for the industry, including advanced gaming and premium video. Flash Player 11 for PC browsers just introduced dozens of new features, including hardware accelerated 3D graphics for console-quality gaming and premium HD video with content protection. Flash developers can take advantage of these features, and all that our Flash tooling has to offer, to reach more than a billion PCs through their browsers and to package native apps with AIR that run on hundreds of millions of mobile devices through all the popular app stores, including the iTunes App Store, Android Market, Amazon Appstore for Android and BlackBerry App World.
You can read their full statement at the source link below.

Source: Adobe Blog