Exactly. It incentivizes corporations to focus on the richer market segment, where the profit margins can be high enough to compensate the relatively low volume

Exactly. It incentivizes corporations to focus on the richer market segment, where the profit margins can be high enough to compensate the relatively low volume, and leave the lower end of the market to be dominated by cheaper alternatives. A product dominating a very low revenue segment may come to be seen as not worthwhile. Not saying such a strategy should be the goal or will be easy, but that seems the natural direction large corporations may want to take.