I think another issue is Apple is using other manufacturers as guinea pigs to vet the ideas. At previous time, Apple used to be in the front of the line in setting the bar and innovation. Now there hasn't really been anything ground breaking so far in recent releases. You could argue that FaceID / wireless charging is innovation, but the other brands have had it for a while now. The only thing I've been enjoying so far is the camera, and I DO plan to upgrade my iPhone again in a year.
I honestly would like to jump ship, but the apps + ecosystem is the largest driving factor for staying with Apple iPhone.
I don't know that Apple has always been as innovative as people like to think, but Apple does have a history of making iconic products that certainly seem like they were the first to do this or that. As an example: Apple didn't invent the mp3 player, but they did make the first one that mattered (and certainly the one that matter most, even if it wasn't the best in terms of audio quality). They have certainly been first in some areas, especially revolutionary features like the pinch to stretch/zoom on the first iPhone. But what's more important? Doing it first, or doing it best? Companies are always making complex decisions when they are competing with each other. Is it better to be the first to offer something new, or better to be the first to offer that new thing in a way that works better than the competition? Back in the iPhone 3G days it seemed like Android was about a year or so behind iOS, and still trying to lure app developers. Apple had the luxury of time to develop and release new features a regular scheduled intervals based on their development cycles. Even then there would be bugs with new major iOS releases, but not nearly the bugs experienced on the Android side at the time. Anyway, those days are over and the competition is better and sometimes beats Apple at releasing features Apple possibly wanted to release first. Apple and Microsoft both have had to adapt to a market that no longer respects regular development and release cycles. These days you have to develop new features and major software improvements on a schedule that is determined by your competition and consumer demand. In Apple's defense for not always being first, they sometimes take something others have done first (smartwatch, fitness tracker, FaceID, fake bokeh) and they do it better.
I was an early adopter of the Apple Watch, which was definitely released a few months ahead of when the software was actually ready for prime time. It still worked, and I'm glad I got it when I did, but it improved a lot when watch OS2 was released. I believe we will be saying the same thing about the iPhone X. It's not as beta as the Apple Watch was at release, but it's not as refined as it will be after a few more updates and another hardware release. It is now the norm for big companies like Microsoft, Google, and Apple to release new features before they have been fully realized, and then fix them with updates.
I'm not a Mac user, but I have used iOS since the 3G. Most Mac users I have known over the years aren't concerned with how innovative Apple is. That's not why most of them buy Apple products. They buy Apple products because the brand has built a reputation on offering hardware and software that they believe looks better, works better, and is more reliable. I'm not a fan of everything Apple puts out, but I too think of their products as having a certain elegance and style (and sometimes simplicity) that many people value more than they value hardware specs and the myriad choices offered by the competition.
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For me, the gesture UI is a nice innovation. Taking a home button centric UI and replacing it completely with a gesture based UI was quite a risk and I think it's been for the better.
I think it might be better for many users. I think the gestures are mostly (but not all) intuitive and even after only a few minutes I felt like the X was better for not having a home button. But the home button is still a great feature for the techno-phobic user who doesn't want to learn a series of gestures. The single home button is what has made the iPhone easily accessible to so many. Of course Apple might offer both for years to come, but at some point it won't make sense to offer a home button on some devices but not others. By then a common set of smartphones gestures might be part of the vernacular for smartphone users around the world.