Apple has been repeatedly criticized for releasing products that are not innovative. It has been criticized for being expensive yet not offering as much as the competition, in particular Android. However you just have to take a look at the last decade to see what Apple has accomplished.
Apple are the company who ended the life of the Walkman when they replaced it with the iPod. They also re-invented the music business and put paid to CDs and was the reason many record stores went out of business.
They beat MS for the OS, invented the Ultrabook, made computers from solid billet aluminium and they turned the mobile phone industry around when they invented the Apple iPhone.
They also reinvented the development and the distribution of software, offered casual games for $1.99 when there was no such market, gave us handsets and computers which used displays that had a resolution of paper.
They replaced chunky looking computers with devices made of just a sliver of glass, in the form of the Apple iPad.
All of this has happened in just one decade. So who says that Apple is no longer innovative?
While some phone makers have overshadowed the iPhone with their bigger batteries and screens, this is being looked at as short term innovation. You can see this by how quickly the trend catches on. HTC for instance introduced the 1080p DROID DNA just a few months ago. Since then we have a dozen 1080p screen devices in the pipeline already, with the first expected to hit in the next few weeks (Xperia Z).
So while the iPhone 5 may not live up to the expectations of many, there is a reason why Apple isn’t changing their game plan just yet.