It seemed logical that the Motorola Xoom would come with support for Adobe Flash 10.1 at launch, as both Android FroYo and Gingerbread have support for it. However, it was then found out that Android Honeycomb and Adobe Flash 10.1 were not compatible with each other, and that Xoom users would have to wait until Flash 10.2 was released.
Now, Motorola announced in a tweet that they are currently sending out an OTA update to Xoom devices to prep them for the upcoming Adobe Flash update, which should be available for download starting on March 18th, next Friday.
Adobe Flash 10.2 is specially optimized for Honeycomb devices, and has code in it which makes HD video playback on the device require less system resources, so one could imagine why it isn't only tablet owners who are eager to get their hands on a less-resource intensive version of Adobe Flash.
Unfortunately, Adobe Flash 10.2 has been confirmed to be only designed for Android Honeycomb devices (currently only the Xoom officially) at its initial release, which seems to dispell the rumors that were circulating last month regarding the update and Android Honeycomb itself makings its way onto smartphones soon.
Image from AndroidandMe