I think the market for high-end phones and devices is probably starting to saturate. Apple has also been relying a bit too much on planned obsolescence, specifically through software updates.<p>Iterating over iDevices and essentially making them thinner and thinner or mini versions of them (i.e. the watch) doesn't really speak of "innovation" to me.<p>Apple's real prowess has been in economies of scale, industrial engineering, and supply chain management. This is how they extract more profit from their devices.<p>However, that profit is now largely based on the same principles of why high-fashion brands can charge $500 for a pair of jeans or shoes. It's also a bit perilous in the sense that once demand falls for "the brand" then a lot of margin just vanishes off the books.