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Rico
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We have around 10% of our customers shopping with an iphone or an Android device. We made a mobile friendly version of our site, and the number of “mobile” shoppers went close to zero :O
We asked to some customer their opinion and they explained that when they were buying from their phone, usually they already knew what to buy. They were doing their research from their computer and they were just completing the transaction from their phone. Sadly they had problems to navigate the mobile site to try to find the same products they saw from home, as the web site was different.
Another problem is that it is very hard to keep a mobile site updated, as your main focus will always be your traditional site, and it is unlucky that you are going to do periodical checks on your web site using an iPhone and other periodical checks using an Android phone, and other periodical checks using any other device… Too much work!

We end up removing the mobile site, and we went for a compromise. Now our traditional site doesn’t use flash anymore (apart from some less important side banner). In my experience a site suitable for both traditional and mobile navigation is a far better experience.

Rico