but when the competition is giving large display with unparalled graphics, amazing cameras, turn by turn directions,
The iPhone has the top graphics performance, the top rated cameras among popular models and turn by turn directions.
and all apple can say is "we updated the chassis by making it smaller" people (aside from loyal customers or label whores) don't think twice about running to the competition.
Of course, neither Apple, nor anyone paying attention to reality would actually say this.
itunes is another reason people refuse to buy apple. the prices for their music is more expensive, they can't share music, devices can only be synced to one library at a time (problem most married people i talk to give), etc.
Up is down. Anecdotes are not trends. iTunes sells 65% of digital music downloads.
yet another reason why apple could begin to falter. it's update cycles, people are starting to see that every year (often times less) there is an update to it's product ranges. the average person doesn't have several hundred or several thousand to drop on a new phone, laptop, or tablet every year. they want a product that will last and not become outdated within a few months of purchase. don't even get me started on how they practically give them away when a new model is introduced. they have started a terrible cycle of devauling their own products and encouraging customers not to buy often because an update is not too far off. shall i mention the ipad 3 and the ipad 4(or whatever it's called) and the rumors of the new ipad coming out this spring/summer? (sn: i bet apple would think twice if other countries began to sue them like brazil [i think]).
I can't even guess what you mean when you say "they practically give them away when a new model is introduced."