Yes you have read this right .... Adobe Flash CS5 will allow developers to create applications built using Actionscript 3, available for the iPhone and iPod touch.
At Adobe MAX 2009, Adobe showed a number of applications and games for iPhone that have been built using a prerelease version of Flash Professional CS5. These applications are available now for you to download from the Apple App Store.
Further information on Flash CS5 and Flash for the iPhone