Engadget is reporting that Adobe plans to build Flash into the iPhone with the newly released SDK, even though Steve Jobs declared less than two weeks ago that the technology wasn’t ready for the device.

So what about all that fuss Jobs made about needing another version of Flash that was more capable than the mobile version but less power hungry than the desktop one? Well, I guess we’re going to have to see just what Adobe comes up with. Chief Executive Shantanu Narayen is quoted as saying “We have evaluated [the software developer tools] and we think we can develop an iPhone Flash player ourselves.”

Now it’s Microsoft’s turn to declare plans for putting Silverlight on the iPhone with the SDK, something Scott Guthrie, VP of Microsoft’s Developer Platform, has suggested the company might do.