The word from theiphoneblog is that during Apple’s third quarter 2009 conference call, COO Tim Cook stated that traditional iPod sales would start to decline and this is why Apple has developed the iPhone and iPod Touch.

Apple has sold 10.2 million iPods including iPod Touch, and maintained over 70 percent US share of the MP3 Market.

iPod sales decline year on year while iPod Touch sales continue to grow up 130 percent and added to the iPhone sales last quarter. Apparently Apple has always said if someone was going to cannibalise their market it would be Apple.