Read this excellent "Forbes" article from April of this year (I quoted the relevant part as I don't believe Apple is "doomed" but certainly teetering):
7 Reasons Apple is More Doomed Than You Think
4. A cheaper iPhone marks the end of Apple’s leadership
Blodget argues that a cheaper iPhone is in the works and that’s good for Apple shareholders. But if Apple goes ahead with that cheaper version, its margins will shrink and that will mean further profit declines.
If a company is going to attract capital, it must have a competitive advantage. There are two ways to get that — Differentiation — delivering a better product for which customers pay a price premium or Low Cost Producer — making an adequate product, charging customers the lowest price and profiting by lowering costs below competitors’ levels.
Apple’s competitive advantage used to be Differentiation – it made better products for big existing markets like MP3 players, smart phones, and tablets – that caused Apple’s appeal to investors and customers to soar.
A cheaper iPhone marks a fundamental shift in strategy to Low Cost Producer. And it is highly unlikely that Apple — with its enormous fixed costs including a $5 billion headquarters complex under construction in Cupertino – will be able to lower its costs below competitors’ in order to win as the industry’s low cost producer.
Much of this relies on public response, projected and actual figures and future trading.
I'll leave you with a few quotes from Steve Jobs on innovation, design and leadership.
"Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It's not about money. It's about the people you have, how you're led, and how much you get it."
-- Fortune, Nov. 9, 1998
"The products suck! There's no sex in them anymore!"
-- On Gil Amelio's lackluster reign, in BusinessWeek, July 1997
"The cure for Apple is not cost-cutting. The cure for Apple is to innovate its way out of its current predicament."
-- Apple Confidential 2.0: The Definitive History of the World's Most Colorful Company, by Owen W. Linzmayer
"Apple has some tremendous assets, but I believe without some attention, the company could, could, could -- I'm searching for the right word -- could, could die."
-- On his return as interim CEO, in Time, Aug. 18, 1997