Apple products tend to be some of the best on the market - and the price you pay for them will prove it. The company also seems to have touched a nerve with the younger generations. Like many companies before them, Apple now runs the risk of not holding up its standards to those that consumers have come to expect.
Customer service is often one of the first places that companies falter. Apple offer the convenience of product stores, but if you don’t live near one a quick visit to the company website will often give you the answers that you need. But for complex needs, Apple has outsourced their customer service - one of the first sure fire steps to disaster (IMHO).
Some of the electronic devices that Apple currently offers are just not as durable as you might want. The iPods are not for the overly active (therefore would not make a great Christmas gift for active, preteen boys) because a hard jarring can cause the device to no longer work properly.
As for innovation, Apple is still King. It seems to have a finger on the pulse of consumers’ desires and it meeting them beyond expectations. Less just hope that the King continues to understand that without the peasants its kingdom will fall.