[nicholassmith]

Here's what's risky about it, the iPod Mini was genuinely very much adored throughout the lands. Apple figured they could change up the market and land a new product, but they had no guarantees that the people who loved the Mini would love the Nano. They effectively gambled a big chunk of revenue on proving to the industry that the Mini was were the puck was, and the Nano was where the puck would be.

Now, it's less risky for Apple as at the time anything iPod was likely to draw in sales, but for the majority of companies would they take a risk of killing an entire product line to make room for something they didn't know would be as well received? I'd wager no, the majority would sell side-by-side and cause consumers to weigh up the relative benefits of both. You'll get sales, but your line won't be as strong. Apple saw that the market responded to the Mini with a dozen 'Mini-alikes' and decided to go all in with the Nano, banking on the competitive advantage it'd give them.