I agree; it’s not going anywhere, especially with that attitude. Innovation never stops, imagine if they thought that with the car, TV, or (Nokia) with the phone. I don’t believe we are close to the end of telecommunication innovation in the form of a handset. Right now it may be stale, but there are definitely areas to be explored.
Which begs the question - is the Apple Watch any less innovative simply because it is an iPhone accessory? After all, it works as well as it does thanks to tight integration with the iPhone and other aspects of the Apple ecosystem, from Apple Music to Siri to the W1 chip?
Apple is rumoured to be working on a pair of AR glasses which will use the iPhone as its “brains”. We see hints of this via features like the U1 chip and Apple’s heavy emphasis on AR overall.
So in a sense, one can argue that Apple is continuing to innovate on their phones. It’s just that the benefits may be seen in the form of accessories such as wearables, rather than on the parent phone itself.