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Apple iPhone 4S

The release of the iPhone 4S and Apple's decision to cut prices on older models of the iPhone led to a surge in customer demand, outpacing the global supply of the phones. In addition, iPad sales skyrocketed, with sales doubling from last year. Apple's success places it just behind Exxon as the largest corporation.

Apple's release of the iPhone 4S fueled smartphone sales and narrowed the gap with Android, as the newer model sparked intense interest in the company's products. Apple's record-breaking profits hinged on its brisk smartphone sales, and points to the importance of new models for the company's revenue growth.

Apple's momentum shows no signs of slowing either, as the company prepares to launch the iPhone 5 and a third generation tablet in 2012. The sales upticks accompanying new models of Apple products also diminishes the threats posed by other smartphone companies, which could be bad news for Microsoft's mobile initiatives.

Apple announced the iBook 2, expanding its scope into education. Apple is partnering with textbook manufacturers and U.S. schools to develop more affordable, high-tech textbooks aimed at improving educational performance. Demand for tablet textbooks is rising, so this venture looks to launch Apple into textbook publishing to corner yet another new market.

The iPhone 4S' success is also tied to the strong marketing and consumer acceptance of Siri. Initially, analysts criticized the latest-generation iPhone, saying the phone lacked innovative features necessary to justify the ticket price. However, the advertising push convinced customers Siri's voice recognition assistant is a must-have feature.

Now that Siri faces legitimate competition from products like Evi or Google's "Majel" software, challenging Apple's edge in voice. The company's next phone is likely to highlight a different innovation, possibly the Kinect-style motion recognition software it patented.

Apple is exploring a variety of investment and acquisition options, with its cash hoard estimated at over $100 billion. It already demonstrated forward thinking with its acquisition of Anobit. Apple uses the flash storage company's technology in its current products, in a move to undermine Samsung's flash storage products, and by making Anobit a part of Apple itself, the device maker will likely maintain an edge in speed and efficiency in its devices.

As long as Apple continues to lead the pack in innovation and marketing, it is likely to keep dominance in the tech industry. Innovations are liable to come fast and furious with that amount of cash at hand to stay number one. The record-breaking revenue this quarter indicates the company's innovative strategy is a winning one, but it must angle to stay ahead of a pack nipping at its heels.