Why Apple May Fall Close to the Tree

Company walks tight balance between innovation and alienation, experts say
By Wesley Oliver,  Newser Staff
Posted Sep 4, 2007 4:24 PM CDT
%u2019s iPhone combines the features of a cell phone and an iPod. (AP Photo/Jason DeCrow, file)   (Associated Press)
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(Newser) – As geeks rev up for a surprise announcement in San Francisco tomorrow, the media is abuzz about what's next for Apple, the Chronicle reports. The iPhone maker has signaled it won't rest on its laurels, but the next big product is unclear—rumors abound about a new iPod, a video-enhanced Nano, even an iRadio.

But experts say Apple’s need to refresh its products could meet backlash from consumers and partners. One analyst sees a WiFi-ready iPod—one popular speculation—hurting iPhone sales and peeving AT&T. But another adds, “If Apple takes an overly conservative tack, it risks being in a rut.”