Apple’s incredible numbers last quarter were mostly explained with the word ‘innovation’. No other company has spend the money, time or made the leaps and bounds in developing new products that pushed the boundaries of innovation. At first there was the iPod. Followed by the iPhone and now we have the iPad, and each device is selling better than the last.

One number was a bit sad to look at though.

Apple’s iPod sales are dwindling. Almost forgotten, the music player is long eclipsed by the huge success of the iPhone and the iPad. Nothing wrong with that. It’s good to have your own product be cannibalized by a new product you create that sells even better.

But could it be, that the the reason the iPods are not selling well anymore is not JUST because of the stellar sales of more popular products, but also because Apple stopped innovating in the music category?

Perhaps the innovation curve has come to a conclusion for Apple. They’ve decided the innovation ultimately leads to evolution and after everyone had a music player the natural ‘upgrade’ meant to sell everyone a phone.

Okay, I get this, but what about music?

Spotify and Rdio are innovating in that area. iTunes is a dinosaur that everyone hates. And as a syncing station, music store, somewhat app store, but not for all apps, movie rental place, etc it seems completely ripe for some innovation, no?

And what about the device, the iPod? iPads are huge and iPhones are chained to an expensive contract?

Fitbit, Jawbone UP and the just announced Nike Fuelband are innovating in the area of bringing us content to a small devices that fit around our wrists and connect to the cloud for tracking statistics.

Time for Apple to get a move on and bring us a wristband/watch, with full access to the app store.

Why not take the “app-enabled’ device-idea and open up more channels on where apps could innovate a product. That’s the ultimate innovation.