Adobe (ADBE) on Tuesday announced that it is bringing its prized Photoshop software to mobile devices as a free-to-use app with a premium monthly subscription option for more features. Meanwhile, Adobe stock has been in a slump lately.

The San Jose, Calif.-based company launched its Photoshop app for Apple (AAPL) iOS devices on Tuesday. A version for Google Android devices is coming in a couple of months, Adobe said. The company also is expanding its web-based Photoshop offering.

Adobe previously only offered limited photo-editing tools on mobile devices through its Photoshop Express app. The new app includes generative artificial intelligence capabilities from Adobe Firefly technology, such as smart object erasing and adding objects to images.

Adobe's release of Photoshop for mobile devices comes as the company faces increased competition in photo-editing software from Canva and other rivals.

Adobe's new Photoshop app targets new and existing users who want the ability to make edits from anywhere and access their work and start new projects on the go.

Premium upgrades from the free Photoshop app cost $7.99 a month or $69.99 annually. The premium version includes access to the web-based Photoshop app, advanced features and 100 gigabytes of storage (vs. 5 gigabytes for free users).

Adobe has seamlessly integrated its mobile and web apps so creators can work on the same project across different devices. The web-based app has expanded availability across browsers including Safari, Chrome, Firefox, and Edge. With the update, Adobe added support for Apple's Safari browser.

Adobe Stock Is In A Funk

In premarket trades on the stock market today, Adobe stock dipped a fraction to 441. Adobe stock has been in a downtrend since September.

"Photoshop's new mobile and web apps unlock next-generation creativity, empowering creators to bring to life gorgeous photos, rich graphics and incredible art anytime, anywhere," Ashley Still, senior vice president, digital media at Adobe, said in a news release.

In an interview with Investor's Business Daily, Still said Photoshop users have been clamoring for a full-featured mobile app.

"Creators have been asking us for this for years," she said. Younger tech users often like to start projects on their smartphones because they grew up in the mobile age, Still said.

The freemium business model is a good way to onboard new customers, she said. Adobe has other freemium apps like Acrobat and Lightroom, Still said.

On Monday, Deutsche Bank analyst Brad Zelnick reiterated his hold rating on Adobe stock with a price target of 475.

He noted that Adobe faces challenges from small and medium businesses using competing generative AI tools such as Midjourney for making images and video. This has made Adobe more reliant on larger, enterprise customers.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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