Skyfire may have had a few bugs and problems with their US launch of their browser that is able to take flash video and convert it to a video format that is acceptable on unlocked iPhone 4 and on other platforms as well. One of the biggest complaints about the iPhone is that they do not support Adobe Flash, which is the largest platform for delivering animation the web. The Safari browser just simply will not read flash, and a number of other browser apps have been developed that support the usage of flash, but none of them have been as promising as Skyfire.
The browser has been surrounded in controversy, but nevertheless has expanded their reach to countries outside of the US including France, Germany and Italy. The iPhone is nearly as prevalent in these countries as it is in the US, and the complaints regarding the support for Adobe Flash have been widespread.
Skyfire apparently worked out so0me of the kinks with their launches with their US launch, because things seemed to go much more smoothly for the browser in these other countries. The app was the number one app in the Apple marketplace on the first day that it was released, but has not been able to regain that position since the initial launch, but has remained one of the most popular apps that is currently available.
Apple has not given an official stance on the app, but since they have loosened their restrictions on apps entering their app store Skyfire looks like it is here to stay. Apple may not support the Flash platform for Internet animation, but that does not mean that they are going to keep app developers from making it part of their arsenal and part of the general appeal of their mobile applications.
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