The announced features in iPhone 3G S are a modest upgrade, not a must-have upgrade -- which in turn keeps users from considering a new handset purchase. Thus far, Apple has conditioned users to look forward to dramatic hardware improvements once a year. While the iPhone 3G remains a pleasing device, nearly as much as a year ago, that doesn't mean the hardware didn't have room to evolve. That Apple hasn't innovated and improved upon its existing hardware and design leaves room for others to ratchet up the competition. And, it also opens room for speculation that innovation may stall without Jobs at the helm.

don't help promote the company's position as an innovator. The company announced a refresh today of its 13.3-inch and 15-inch models, with lower prices, and more powerful components. Although it brought back FireWire 800 and introduced an SD Card slot, these models lacked the wow factor we've come to expect from Apple hardware.

Where Apple continues to hit it out of the park, though, is its App Store. As of April, have been downloaded, and more than 50,000 are available for download. The competing App Store numbers remain modest and negligible by comparison.

The App Store juggernaut may well be the reason Apple feels it can rest easy for the moment, but Apple will have to tread carefully to keep the iPhone from becoming less an innovation and more a presumption and commodity among mainstream consumers.