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Has the iPhone cannibalized the iPad? An asymmetric competition model

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  • Mariangela Guidolin
  • Renato Guseo

Abstract

Product cannibalization is a well‐known phenomenon in marketing, describing the case when a new product steals sales from another product under the same brand. A special case of cannibalization may occur when the older product reacts to the competitive strength of the newer one, absorbing the corresponding market shares. We show that such cannibalization occurred between two Apple products, the iPhone and the iPad, and the first has succeeded at the expense of the second. We propose an innovation diffusion model for asymmetric competition, Lotka‐Volterra with asymmetric competition, allow to test the presence and the extent of the inverse cannibalization phenomenon. A nondimensional representation of the model helps showing the effects of cannibalization on life cycle length.

Suggested Citation

  • Mariangela Guidolin & Renato Guseo, 2020. "Has the iPhone cannibalized the iPad? An asymmetric competition model," Applied Stochastic Models in Business and Industry, John Wiley & Sons, vol. 36(3), pages 465-476, May.
    • Handle: RePEc:wly:apsmbi:v:36:y:2020:i:3:p:465-476
    DOI: 10.1002/asmb.2505
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    References listed on IDEAS

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    7. Guidolin, Mariangela & Guseo, Renato, 2015. "Technological change in the U.S. music industry: Within-product, cross-product and churn effects between competing blockbusters," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 35-46.
    8. Guseo, Renato & Mortarino, Cinzia, 2012. "Sequential market entries and competition modelling in multi-innovation diffusions," European Journal of Operational Research, Elsevier, vol. 216(3), pages 658-667.
    9. Guidolin, Mariangela & Guseo, Renato, 2014. "Modelling seasonality in innovation diffusion," Technological Forecasting and Social Change, Elsevier, vol. 86(C), pages 33-40.
    10. Novelli, Francesco, 2013. "Measuring Sales Cannibalization in Information Technology Markets: Conceptual Foundations and Research Issues," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 61299, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
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    1. Petropoulos, Fotios & Apiletti, Daniele & Assimakopoulos, Vassilios & Babai, Mohamed Zied & Barrow, Devon K. & Ben Taieb, Souhaib & Bergmeir, Christoph & Bessa, Ricardo J. & Bijak, Jakub & Boylan, Joh, 2022. "Forecasting: theory and practice," International Journal of Forecasting, Elsevier, vol. 38(3), pages 705-871.
      • Fotios Petropoulos & Daniele Apiletti & Vassilios Assimakopoulos & Mohamed Zied Babai & Devon K. Barrow & Souhaib Ben Taieb & Christoph Bergmeir & Ricardo J. Bessa & Jakub Bijak & John E. Boylan & Jet, 2020. "Forecasting: theory and practice," Papers 2012.03854, arXiv.org, revised Jan 2022.
    2. Andrea Savio & Luigi De Giovanni & Mariangela Guidolin, 2022. "Modelling Energy Transition in Germany: An Analysis through Ordinary Differential Equations and System Dynamics," Forecasting, MDPI, vol. 4(2), pages 1-18, April.

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