No, I actually meant demand. You are correct in implying that profit margins are part of the equation, because when companies aren't profitable they fold, and people lose jobs. But you still need to have an in-demand product to spur development. The more people who want it, the more spread out the costs. Most companies actually see the lower production costs as a way to lower the cost of their product and get it into more hands, especially when they are looking to replace an existing, cheaper product. overall profit may go up, because the product is actually affordable, but profit margins on individual units remain relatively static.
I sensed a bit of flip in your response. I can only assume that you are expressing some sort of opinion about the concept of profit. I don't get it... are you mad at capitalism, the "greedy" corporations, or... what?