There has never been much of a market to begin with.
Given that you can today get quite decent indie games for your computer for 5-10 bucks, flashgames-gone-iPad can't sell for more than pennies. There was a bit of money in timewaster games, games you can pick up and put down at the spur of the moment as you have to kill a little time, waiting in line, waiting for the bus or waiting for your girlfriend to stop talking.
The problem is that these games are rather easy to make and that only the first handful of people who had the idea to do so actually had a market to speak of. After the flood of copycat games drowned everyone, nobody really could make more than a handful of bucks out of the 99 cent game fad.
The next step now are free-2-play, pay-2-stay games. Games that are "free" but require you to spend money (and often quite ridiculous amounts thereof) to keep playing. Considering that I now even start to see TV ads for them, I dare say that they, too, are no longer something an indie game maker can try his hand at, considering that very obviously the game mafia has cornered that market already.
So, essentially, I'd say indie games on phones are over. Get over to Steam, there seems to be a market for indie games left.