They produced the first good MP3 player, the iPod. Then others developed good MP3 players too.
MP3 players existed before the iPod, many of them were cheaper, had more storage, and better user interfaces. When the iPod came out it had half the features, but better marketing. I had an MP3 player in the days of the original ipods, it had twice the storage, and played video (the ipod didn't yet) it also had a much more intuitive user interface, and a longer battery life.
They moved on to the first good smartphone, the iPhone. Then others developed good smartphones too.
Smartphones existed before the iPhone, many of them were cheaper, had more features, and better user interfaces, when the iPhone came out it had half the features, but better marketing. I had a smart phone before the first iPhone, it had lots of apps available, cut and paste functionality, and several other features that didn't exist on the iphone at the time.
See a trend here? Apple has NEVER created the "best" anything, or the "first" anything, They produce marketing. that's it.
Apple needs a new form factor
And I'm sure that once someone else starts to make inroads in to the mainstream market with something neat, Apple will find this new device, make an inferior version, and market the heck out of it. That's what they do. And I'll admit, they do it really well.