Why Apple May Fall Close to the Tree

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.” (More Apple stories.)