I will say there is a difference between innovation, and meaningful innovation.You're confused, the stock price is not an indication of innovation.
It is simply that the market anticipates good sales. Good sales is not an indication of a good phone, it is simply that people are upgrading (not buying) in higher numbers, the time is right for more to do this than in recent launches where numbers were significantly down.
What Apple has done here is improve the iPhone in ways that are meaningful to the end user. Better camera, improved battery life, faster processors, everything is better in some way. Perhaps by themselves, none of those improvements are revolutionary. But it’s a solid list of year-over-year improvements, and the sales results show that consumers agree.
Second, I think people are forgetting that Apple sells more than just smartphones. Part of me wonders if all these companies are coming up with all sorts of weird designs for smartphones because they have no presence in the wearables market. They can only double down on smartphones, and rely on questionable hardware features and form factors to get around what is pretty much a nonexistent software and services portfolio.
Third, the allure of Apple products has always been its ecosystem, made possible by Apple's outstanding design and integration. While these benefits aren't limited to the latest iPhones, Apple has rolled out a bevy of new software features and services that further add value, from Apple Arcade to Apple Card.
While some may point to examples like folding phones or even the latest Essential phone leak, and try to hand wave it away as "at least someone is trying", it's a moot point to me because it's not meaningful innovation that I can actually use. In the very least, I would argue that the main reason why Apple isn't doing a folding phone (to my knowledge) is because they already have the Apple Watch, and feel that AR glasses would be more practical.
So from what I can see, Apple is still innovating. Not all its innovations can be found directly on the iPhone, but that doesn't mean it doesn't benefit the iPhone user.