Q: And how much was it that suppliers were being pushed by Apple into being 'innovative'? Would anyone be producing laptop size retina panels if not for Apple's demand? How long would we have waited for retina laptops if we had to rely on HP, Dell, etc.? A: I have no facts on this and probably only LG and Apple insiders really know. If I had to guess I'd say: LG has been in the display business for decades and have had a long R&D program to research how to make better displays. They (and other companies) figured out how to make very high-res displays at a cheaper price (i.e. they innovated). LG then shopped the technology to several suppliers. HP, Dell, etc. were interested but knew that such a product wasn't a good fit for their product mix and would be too expensive for their typical customer. Apple saw the opportunity (kudos to them) and are able to command a premium price from consumers so they locked up a deal with LG.
Did Apple innovate? Personally, I'd just say they saw a market opportunity and ran with it.
I guess the real point of difference here is how far we can/need/should stretch the word innovate.
To put a twist on your metahphor: Your boss comes to you and says "hey if you can make X go 10 times faster for 50% less, they'll sell like crazy" You then spend a couple weeks figuring out how to achieve that goal. Does that mean he innovated by seeing a market need and setting a goal? No, he saw a market need and deserves a pat on the back for that. You innovated a solution and deserve a pat on the back for that.