This restriction of their efforts on only the most profitable offerings like this seems like a continued step backwards for a company which used to do so much innovating. If all you work on is the iteration and merging of existing devices, you're going to be left in the cold as you're out-innovated by your competitors.

This is what happened to Microsoft, and it took many years and a major internal upset to get them back on a positive track. And now look at Microsoft since they've started diversifying and innovating again: they are providing an OS (and hardware) which is genuinely interesting to professionals in a variety of fields. They are going to steal Apple's thunder here soon, unless Apple really makes an effort.