One of the business tenets that has led to Apple’s incredible success is that the company isn’t afraid to cannibalize its own products. If anything, Apple tends to embrace such scenarios, with Tim Cook once explaining that Apple views “cannibalization as a huge opportunity.”
“Our core philosophy is to never fear cannibalization,” Cook said during an earnings conference call two years ago. “If we don’t do it, someone else will. We know that iPhone has cannibalized some of our iPod business. That doesn’t worry us.”
With that said, one can only hope that Apple will take steps to actively cannibalize its own iTunes business. If they don’t, some other company will, and it may happen sooner than anyone thinks.