I am not sure about the iPhone market, I am on Android. But I can tell you for sure that there are still big chances just because good games are missing. I mean, look at the "best" games there:
First there are tons of tower defense clones, most of them ugly and with repeating and boring gameplay.
Then there are totally nonsense games where you have to cut moving fruits with your fingers (e.g. Fruit Ninja). I dont get the hype around it, but this is silly.
YES! The exact same situation on the iPhone/iPad (though there ARE good games), the problem is: No one buys them because they can't be found. Like I said, whats not in the Top 50 or featured in the first page (usually its the same content), has lost. Here is screenshot from the iPad App Store which I think is fuller of "professionell" people who look for serious Apps:
The only game which isn't really just casual is World of Goo and its only there because they lowered the price, before it was at no time in the Top 50.
This food slaughter game makes million, as well as the rope slaughter game, not saying the last one isn't fun, but its no way worth a place 3 in the Top 50.
From my experience (I know a lot of developers who work for iOS and I'm a developer since more than two years too), good projects go into the App Store to die. They could have been so great on the PC where people actually look into websites which features good games instead of just two HTML store pages.
But I found that really impressive games are coming to Android now. Look at this:
http://www.youtube.com/watch?v=BeyQ-PC_cwcThis game has been made with the Unreal engine. I even did not know that UDK also works on Android now but it looks that way. And users who bought it wrote that it runs fluid on my phone (HTC Desire HD):
Nah, don't worry, it sucks. Way too much controls on the screen (even on a 9,n" iPad!) and the translation is horrible (even the english one).
I'm really sorry that this is considered a great game on Android.
