According to Bigpoint CEO Heiko Hubertz, the iPhone app market “has already crashed”. Apple recently declared that App Store developers recently made $1 billion in revenues for themselves. Yet Hubertz said that this rich sum would be spread thin across the 250,000 apps on the marketplace. He added “This market has already crashed. You cannot sell your game for 99 cents and expect a return.”. He does have a point there and the App Store isn’t exactly big budget game producer friendly like experienced by Capcom and Bioware but Apple built the ecosystem so that any indie developer who spends a bit of time and effort could potentially churn out a profit.
IMHO, the market hasn’t crashed and it’s probably going to go through an evolution to the next stage where mobile apps need to be unique and a proper marketing strategy for it to succeed.