Also no technical innovation: iMac, iPod, etc.
That's not how Apple became the most profitable company in the world. The first thing Jobs did when he returned to Apple was cut out all of the excess product lines.
And even then, Apple typically left the previous iPhone model around at a discount so price-sensitive consumers could buy a discounted 4S instead of a cutting-edge 5, for example.
Interestingly, the iPhone 5c may not be designed to sell like hotcakes itself, but to frame the higher models as better deals. That's what I meant by market segmentation. I also suspect it was harder to keep their margins on the newer CNC'd metal iPhones as they dropped to the entry-level tier. The iPhone, even more so with the 6/6+, currently seems to be the only line that bucks the trend.