Adobe Furthers Its Lead in Mobile App Development with PhoneGap Acquisition

October 5th, 2011 by Trefis Team
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Adobe (NASDAQ:ADBE) is moving rapidly to capitalize on the shift to mobile and tablet computing. On Monday at the Max 2011 conference it announced that it will be acquiring Nitobi Software, the creator of PhoneGap. [1] PhoneGap is an app development platform which allows you to build cross platform mobile apps easily using web technologies like HTML 5 and JavaScript. It allows you to create apps for Apple‘s (NASDAQ:AAPL) iOS, Google‘s (NASDAQ:GOOG) Android and RIM‘s (NASDAQ:RIMM) Blackberry simultaneously with minimal development effort. Adobe currently competes with Apple, Quark and Corel in the creative software market.

We currently have a $35 Trefis price estimate for Adobe, which is nearly 45% above the current market price. Creative software accounts for more than 50% of the Adobe Trefis price estimate.

Check out our complete analysis for Adobe.

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PhoneGap Acquisition to Further Adobe’s Lead in Mobile App Development

PhoneGap is already integrated with Adobe DreamWeaver CS 5.5. It will allow HTML5 developers to easily create mobile apps on multiple platforms and publish them. With the PhoneGap acquisition, Adobe now offers the two most popular cross platform development tools for mobile and tablets. Developers can now use either Adobe Flash to create Flash apps, or PhoneGap to create HTML 5 apps and port them to the Adobe Air platform on the iPhone, iPad, Android and Blackberry devices.

HTML5 is expected to supplant Flash as the most popular way to create interactive animations and web content while tablets and smartphones are expected to replace computers in the coming future. Adobe is investing heavily in HTML5 development software, as well as mobile and tablet apps. It recently announced the launch of 6 new Creative tablet apps, including Photoshop Touch. With these moves, we expect it to extend its lead in the desktop creative software market to creative software for tablets.

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Notes:
  1. Adobe Announces Agreement to Acquire Nitobi, Creator of PhoneGap, Press Release [↩]