I know quite a few people who are working at small companies making iPhone apps and games, and even with the massive userbase of the iPhone most of these companies are bleeding money; and will go bankrupt the second venture capitalists no longer see "massive potential" in the iPhone. Even the simplest iPhone games can take development teams of 3 to 5 people 9 months to a year to complete, which means that these games have a development cost of $250,000 to $500,000. Most of these same games are selling for $1 per unit, and after Apple takes their cut the companies are luck to get $0.50 for every copy sold. This means that many of these games require 1,000,000 sales before they break even, and off of such low revenues they can’t even afford marketing to make this likely.
I hate to be blunt, but the entire iPhone-app market is heading for a massive crash because of how unsustainable of a market it is.
