OP may have meant iPhone, but the best example is the iPod -> iPod Mini, as well as the iPod Mini -> iPod Nano. Both products were flying off the shelves and ra

OP may have meant iPhone, but the best example is the iPod -> iPod Mini, as well as the iPod Mini -> iPod Nano. Both products were flying off the shelves and racking up massive sales when Apple undercut themselves with the cheaper product (the Mini) or completely replaced it with a radically different form factor (the Nano). In both cases it seemed like money on the table, but in both cases the products became the core of Apple's product offering and dramatically out-sold their predecessors.