If the iPhone 6 eats the sales 4 million iPads, it actually adds $1.2 billion to Apple’s sales and $780 million in gross profits.
So, while the iPad business is slowing, and shows no signs of getting better, it’s not that big a problem for Apple. The iPhone is going to pick up the slack.
Interesting thoughts. Apple will actually earn more money selling the 5.5-inch iPhone 6 than they do selling iPads. So it doesn't matter if the larger iPhone will cannibalize the iPad market. Not for Apple at least.
Personally it get harder and harder for me to decide which iPhone 6 I will buy. I have decided to buy the new updated iPad Air, but not yet if I should buy the 4.7-inch or the 5.5-inch iPhone… Decisions decisions :)