> Instead Apple realized cellphones would never be great MP3 players so even if they cannibalized some sales early on trying to maintain an artificial distincti

> Instead Apple realized cellphones would never be great MP3 players so even if they cannibalized some sales early on trying to maintain an artificial distinction would not be useful in the long run. I believe they came at it from another way: if someone is going to eat at your sales (iPod), it might as well be you (iPhone). That's been Apple's mantra for a while. And although anecdotal, most people I know with an iPhone (or Android smartphone) don't buy new iPods. And if they do, it's a lesser model (i.e. for excercise); not to the same value as before.