Apple has an excellent track record of not leaving price umbrellas under their products (even if it means releasing something super minimal, like a Mac Mini or iPod shuffle) nor do they usually create multiple products at the same price that cannibalize each other.
The second rule isn't as strong because it isn't nearly as big a problem as price umbrellas. They've often said (correctly) that if anyone's going to cannibalize their products it might as well be them, e.g. iPod sales declining because of the iPhone taking off.
I don't think this model applies to the whole product line. Obviously, different products have different price bottoms, and tablets won't go farther under $200 in the short term, so that end of the pyramid won't even be half-filled by an iPad mini. You can also see it this way: http://cl.ly/image/423I21222t0a
http://www.iamconcise.com/main/the-reason-for-the-ipad-mini....
Apple has an excellent track record of not leaving price umbrellas under their products (even if it means releasing something super minimal, like a Mac Mini or iPod shuffle) nor do they usually create multiple products at the same price that cannibalize each other.
The second rule isn't as strong because it isn't nearly as big a problem as price umbrellas. They've often said (correctly) that if anyone's going to cannibalize their products it might as well be them, e.g. iPod sales declining because of the iPhone taking off.