Earlier quoted context omitted.
"Companies need to be willing to cannibalize themselves or someone will do it for them." --> This. exactly what Steve Jobs said when the iPhone was launched and there were questions about if the iPhone would cannibalize the iPod.
"Oh no, a more expensive, higher-margin product that we own will cannibalize a less expensive, lower-margin product that we own." -- nobody ever This kind of "cannibalization" is a modest tactical concern about the details of your financial forecast. If someone cannibalizes their more expensive, higher-margin products with a less expensive, lower-margin product, strategically and intentionally as part of a big plan,…
I genuinely think Apple cares more about competition and middle/long term revenue than artificially keeping alive high margin products.