They have another lever they can pull besides lowering prices, raise the wages of their employees so the employees can afford their products. Competing for a larger piece of a smaller pie seems less important than increasing the size of the pie. If you keep raising prices to make your numbers fewer people will buy. In the extreme prices become infinite and buyers go to zero and you've destroyed your company. Raising wages creates competion for employees which will raise the wages at other companies, providing even more customers.<p>Edit: changed "large" to "larger"