I guess I was thinking people will still buy phones and phone contracts. Given that they will, and if you're in the market for a new phone and the iPhone/Touch-like iPod experience, why not just get an iPhone? For the vast majority of iPhone buyers I'm betting that iPhone alone is a more attractive option than A.N. Other phone plus a Touch. Not all for sure, but for the majority. Only one device to carry and to charge, cost similar (iPhone probably cheaper than A.N. Other plus Touch, contracts similar), similar (desired) functionality (iPhone does everything the Touch does). Of course the iPhone won't do for some and some will never use AT&T, but those folk were never going to iPhone buyers anyway and aren't relevant to cannibalisation. Fair points about capacity and battery, and I'm sure that will sway a few.