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> When you own a whole ecosystem Google virtually own Android, and yet they haven't innovated or taken the initiative in a way that Apple has. A distinction can be drawn with Apple here, as they've opened new markets by making devices that didn't exist yet (e.g., touch-driven mobile computing). They innovated from the beginning, not so much remaking Altavista with Bigtable.
While certainly Apple has innovated on things, you can't name anything which was not a gradual improvement but, as you say, a device that didn't exist yet. The first phone with a capacitive touch screen was the LG Prada. Of course, resistive touch screen phones existed for a long, long time before that. Sony Ericsson Liveview, MOTOACTV, the Pebble watch, even the Samsung Galaxy Gear predates the Apple Watch. As alway…
That said, the LG Prada beat the iPhone to market by a month but the iPhone was in development for longer. What’s really interesting is the LG Prada II included a physical keyboard showing they where backing away from the design rather than doubling down.