I can solve this riddle.
Apple's problem is not a lack of innovation. Apple's problem is that it seems to have the resources and aptitude of a much, much smaller company than it is.
Take iOS 7 for example. It's been described as a Herculean effort, but a few independent software developers could have reskinned iOS to look like iOS 7.
Apple is no longer a company that can uniquely claim to save Christmas (remember Janie saving Christmas in 2002?).
Apple's main offering was reliable, high quality software. Apple had teams that could regularly put out new versions of iLife that were high quality software. I know that the board of directors wants Apple to keep coming out with what I call "fast-food computing" products, but chasing those fads has already run out of steam. It hasn't run out of revenue, but consumers are wanting something more for their empty lives that isn't there. They are already tapping away at tiny little screens buying in app purchases for extra lives. And they're bored and want something else. Consumerism is running on fumes.
Apple has been smart with its computers to go after the higher end market and not race to the bottom. And with their iOS devices they've done the same. But relative only to their past success with software, they are faltering. This idea of going after more fads and more "innovation" is wrong. They need to work on the Mac, work on software quality, and get a new direction in software design (the evolution of iPhoto and iMovie are examples of exactly what not to do). And they need to partner for web-services. Going after Maps was dumb. They are too blinded by their ego-pain.
Apple built some really beautiful, reliable, high quality software when it was going bankrupt and when it was making a lot less money than it is now. They lost their way when they thought the "app store revolution" was something more than it is. They let the market start dictating their direction. And they started making Mac software worse to make it more like iOS (I guess that's the explanation; either way, Mac software has gotten worse). I remember the days of Tiger and new iLife and iWork versions coming out. The Mac was at its peak then. Any version of iMovie 06 or below was amazing.
There are so many bugs in Mac OS X now that Apple ignores I'm thinking of starting a YouTube channel to show screencasts of all of them to try to get them to focus on them.
Sorry I'm rambling. This topic just brings up so many emotions in me because I see Apple making bad decisions and not "getting it."