Apple uses Objective-C because they have a lot of code written in it, and it has served them very well. iOS is the most popular mobile platform for third-party development. The dynamic nature of the language has enabled the implementation of some useful features like key-value-observing, while the ability to drop to C retains the flexibility of system-level programming.
Even the memory management criticism is overblown. You merely have to follow an easy list of four ownership rules. That's if you're not using the garbage collector that came out four years ago with Leopard.