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Apple Eases Restrictions; Adobe Surges

Apple is relaxing the restrictions on tools used to create apps for its iOS operating system, prompting a surge in Adobe shares.

This story has been updated with comment from JMP Securities analyst Pat Walravens.



) --


(AAPL) - Get Apple Inc. Report

is easing the restrictions on developers creating apps for its iOS operating system, prompting a surge in


(ADBE) - Get Adobe Inc. Report

shares in early morning trading.

Adobe became embroiled in a war of words with Apple earlier this year after the consumer tech giant

shunned Flash technology on both the iPad and iPhone

, questioning the software's security. Apple had restricted developers to its own development tools and also blocked outside tools for measuring app performance.

Investors on Thursday morning saw Apple's turnaround as a big positive for Adobe.


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shares spiked $2.35, or 8.02%, to $31.66.

Pat Walravens, an analyst at JMP Securities, explained that Apple has relaxed some of the restrictions in its iOS Developer Program License Agreement that had previously blocked the use of Adobe's Flash Professional to export iPhone applications. "In plain English, Adobe's work around for the iPhone and iPad should now work," he wrote, in a note released on Thursday.

The analyst, who maintains his 'market outperform' rating for Adobe, added that the software specialist is reasonably valued.

Apple, which faces increased competition from


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Android operating system, has clearly been under intense pressure from app developers.

"We have listened to our developers and taken much of their feedback to heart," said Apple in a statement released before market open. (Apple made no specific reference to Adobe.) Apple said it is relaxing some of the restrictions on its iOS Developer Program license that were implemented earlier this year.

Specifically, Apple is easing all restrictions on development tools used to create iOS apps, as long as the resulting apps do not download any code. "This should give developers the flexibility they want while preserving the security we need," said Apple.

Apple is also publishing its App Store review guidelines for the first time in an attempt to help developers understand how the company reviews submitted apps. "We hope it will make us more transparent and help our developers create even more successful apps for the App Store," the company said.

The company now has more than 250,000 applications in its App Store, from which 6.5 billion apps have been downloaded.

Apple shares rose $2.96, or 1.13%, to $265.90.

--Written by James Rogers in New York.

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