Lee BrimeLow of the Flash Blog has posted a nice video tutorial on how to create a native iPhone application using the upcoming Flash Professional CS5. This tutorial shows how similar the process for creating an iPhone application is to process for creating AIR applications.
Just like on-device testing using Xcode, those wishing to test their Flash-created iPhone application would have to acquire the $100 developer license from Apple in order to be able to test their applications on their actual devices or in order to distribute them through the iTunes store.
Learn more about this by viewing the video tutorial here.