Europeans losing interest in Adobe

Europeans are giving some big names in software and hardware bad dreams.

All hardware manufacturers are describing demand in Europe as flaccid. Now Adobe, whose ubiquitous Flash and CS publishing packages normally do rather well, is finding that Europeans are not bothering with upgrading.

Adobe Systems said that it had a 54 percent jump in quarterly net profit and held on to its sales growth target, but warned of weakness in demand for its applications in Europe.

It seems that Europeans are not upgrading to new versions of CS, Photoshop and Illustrator. Part of the reason for this is that the software is pretty expensive and new versions are not that much different from the old ones.

Adobe had been expecting trouble from Japan, which is one of its biggest markets. However the Flash media player, Omniture web analytics software and Acrobat did OK.

Mark Garrett, Adobe’s chief financial officer, said in a conference call that the only place the company did badly was the Europe, Middle East and Africa region.

Aware that its software was getting a bit expensive, Adobe tried to bring in some rental programs.

It is not clear if they worked, as they were pretty pricy too.

Meanwhile, one of the complaints against Adobe’s CS5 package was that it looked and acted the same way as Adobe CS4, making the cost of an upgrade fairly pointless if you were a cash strapped company.

Reuters said that shares in the outftit fell on the news.