Yes Apple does cannabalize its own products, iPod-> iPhone & notebooks -> iPads for instance. From what I remember this was also how Jobs et al. at Apple views it.
Basically if you want to be a innovator you can't worry about eating your own.
Incidentally Tesla has done the same with Model 3 / Y eating up S / X sales.
Eeehhhhh. Not really. They did discontinue the low-end S editions, yes - but the number of people who could have afforded to buy an S who opted for a 3 instead aren’t that many people.
Tesla opted to remarket the S/X as flagship cars instead of being their mainstream offering.
It would be cannibalism if Tesla launched an extended wheelbase/station-wagon/estate/shooting-brake version of the Model 3/Y while still getting the S/X around.
Actually - I will concede that the Model Y probably is eating into sales of the X.
Basically if you want to be a innovator you can't worry about eating your own.
Incidentally Tesla has done the same with Model 3 / Y eating up S / X sales.