They should cannibalize themselves just Apple did with the iPhone effectively killing the iPod. If they don’t do it someone else will. Kodak was in a similar situation with digital photos as they were scared that it would kill off their film business.
I think ipod/iphone isn't the best analogy, because the iphone is sort of just an ipod with more features. What the iPhone _really_ disrupted was the Macbook and personal computers in general, not to mention other mobile phones.
