Yesterday Apple unveiled new app store developer guidelines that among other things lifted the restrictions on developer tools that developers can use to create an iPhone app. Adobe already wanted to get out of the iPhone developer business as their Adobe Packager for iPhone was not allowed until now.
Adobe responded to the new Apple guidelines and announced to continue to develop the tool. The Flash Professional CS5 authoring tool contains the packager for iPhone that enables Flash developers to quickly and easily deliver applications for iOS devices.
This does not mean that we will see Flash on the iPhone browser anytime soon as well.