ZDNet was the first to announce that Adobe would be stopping all development on mobile devices on its Tech Broiler blog. The statement says that Adobe will stop all development of Flash for Android devices and focus its efforts on HTML 5 and other mobile apps. This was recently confirmed by Adobe on their own blog.
Our future work with Flash on mobile devices will be focused on enabling Flash developers to package native apps with Adobe AIR for all the major app stores. We will no longer adapt Flash Player for mobile devices to new browser, OS version or device configurations. Some of our source code licensees may opt to continue working on and releasing their own implementations. We will continue to support the current Android and PlayBook configurations with critical bug fixes and security updates.
Adobe does plan on continuing its support on its current Flash for Android. What this means is that new device will still be able to download Flash from the Android Market. All this really means it that when they update the Desktop version of Flash that it will not be ported in the form of an update to mobile devices. The current available Flash package should last long enough for HTML 5 to take over.