Well for one thing declining market share in both phones and tables and lack of recent innovation.
Declining market share in recent quarters, but not year over year. Recent quarter decline means pent-up demand for the new model. Further, the supposed "decline in market share" is a complete guess by analysts since only Apple has the balls to report actual sales figures. There is not a single Android manufacturer that is providing that information. In the USA, where carriers have reported smartphone share, we saw iOS increase market share at a faster rate than Android did.
Secondly, lack of real innovation? Seriously? I could buy a parrot if I wanted to hear that garbage any more. Let's put it to rest right here:
1) In-cell touch-screen technology for which Apple has related patents is brand new and amazing.
2) A6 processor is a custom design from Apple (not the A9 or A15 from ARM). A15 was designed for servers and not optimal for smartphones, so Apple designed their own while everybody else uses the licensable designs from ARM. The result: the fastest mobile processor in any smart phone. Twice as fast as A5 and benchmarks exceeding all competitors.
3) Thinnest lightest smartphone in the world while packing LTE with great battery life. Part of this is on Qualcomm for delivering a chip to handle LTE, GSM, and CDMA all in one, but part of it is on Apple for (1) refusing to compromise on power-hungry chips and (2) making the whole package exceed the battery life of previous models and competitors while supporting LTE.
4) iOS has continued to out-perform competitors with half or sometimes one-fouth the RAM that competitors use in their devices. With iPhone 5, you get double the RAM of last generation which means the performance is going to skyrocket.
5) iPhone 5's screen has perfect color reproduction. The next closest mobile display is that of the retina iPad 3 which was almost near-perfect. The iPhone 5's display can be used for color reference it is so good.
6) The lens cover on the camera on the iPhone 5 has a sapphire crystal to allow it to be thinner to allow slightly more room for the optics beneath, and yet with a thinner design they have produced a camera that takes better pictures and especially better pictures in low light.
7) They created an all-digital connector that supports the basic charging and syncing that you would get with standard micro or mini USB port from competitors, but also supports HDMI output, VGA output, and a host of other functions while making it reversible as well. Meanwhile the connector is 80% smaller than their previous 30-pin connector.
That is just the hardware improvements. The software improvements in iOS 6 are awesome and there are about 200 of them. What did Jelly Bean bring to Android? Two things: decent UI performance with project butter (finally) and Google Now. Somehow adding 3D vector-based maps with turn-by-turn and fly-over and an incredibly useful "Passbook" software to carry all your tickets and coupons and updating Siri to do a ton of new functions is less innovative than the competition?
Any idiot can build a giant screen smartphone and shove in a separate chip for LTE and one for 3G and shove in more battery to compensate for power usage while increasing the weight of the device and giving it a crappy pentile display with cruddy color reproduction.
Only Apple can build an incredible smartphone like the iPhone 5.
