You have to be pretty innovative with hardware design to reduce the weight of a phone that's already compact by 20%.
I don't think they lost their touch at all.
They are indeed different from the CPUs used by other smartphone manufacturers.
I also suspect that most of the speed and power gains come from process improvements.
I hate many of their decisions, many of their views, but I think they always had and still have the right mix of iteration and innovation.
Iteration is how Apple plays it, and they play it well.
Innovation works best when the existing alternatives are awful. I'm not sure why one would "innovate" against their successful formula.
Individual features might be innovative, however. For example, the re-arrangement of photo processing tasks to produce better low-light photos.
http://live.arstechnica.com/apple-september-2012-event-its-a...
- The main innovation is done to create new products: iMac, iPod, iPhone, iPad. Such products are a result of years of research and development. When Apple releases the product, they make sure the core usability philosophy is sound and does not need to be changed afterwards. - After a product and the surrounding concepts are released, Apple is very conscious not to depart to far from the original concepts and philosophies surrounding that product group. This creates trust and customer loyalty that more "innovative" brands would pay dearly for.
This, in my opinion, has been an oft-overlooked factor in Apple's success.