Mozilla has confirmed that they will not be working on a Mobile version of Firefox for iPhone and will instead continue to work on Firefox Home for iPhone with a future version for iPad under consideration.
According to a blog post on the Mozilla blog, Mozilla will not spend time or efforts on building an Firefox iPhone app and will instead continue to build Firefox Home as a rich cloud-based application.
We are working to bring as much of your Firefox experience as possible to Firefox Home. People have asked about adding more browser-like features to Firefox Home, but there are technical and logistical restrictions that make it difficult, if not impossible, to build the full Firefox browser for the iPhone. We are focused on building Firefox Home as a rich, cloud-based application and making it a valuable product that people will continue to love and use.
Mozilla will continue to add more features to Firefox Home while adding new platforms like Blackberry and Symbian to the list. They have also said that they might end up creating a Firefox Home app for iPad in future.
Earlier, Mozilla had also stopped development of Firefox Mobile for Windows Mobile when Windows Phone 7 was announced. Now, with indication that Mozilla will continue to offer Firefox Home as an app on different platforms rather than the whole browser itself, Mozilla might be bailing out of the heavily competitive mobile browser market which is currently lead by Opera Mini and Opera Mobile.
Also with the help of Firefox Home as a sync platform for mobile devices, Mozilla might start attracting more users towards their desktop platform.