> Be the low cost competitor and cannabilize your own market. Otherwise you don’t build the iPhone because you don’t want to lose iPod sales. The iPhone was a

> Be the low cost competitor and cannabilize your own market. Otherwise you don’t build the iPhone because you don’t want to lose iPod sales. The iPhone was a high-cost competitor to the iPod. And Apple knew that multi-function devices usually offered poorer user experiences than more focused, (mostly) single-function devices like the iPod. But they still did the iPhone.