I'd say prices of products come down due to competition, not due to the companies getting more money outside of the regular supply/demand relationship.

Let's assume you have a monopoly on something with a guarantee that no one else can sell the same product in your market. Then there is no direct incentive to make the product cheaper, even if you can produce it for cheaper. Adding more money on top of it that is supposed to trickle down in some way will not make that product cheaper, unless there is an incentive for that company to do so.

The real world is of course more complicated, let's say you have two companies that get the incentives and one of them is using it to make the product cheaper, then that will "trickle down" as a price decrease because the other company need to follow suit to stay competitive. But this again is driven by the market and not the incentives and would have happened without them just as well.

You seem to describe commodities, rather than new technologies that are not commodities. New technologies start so far out on the supply demand curve that an order of magnitude decrease in price can expand the market by orders of magnitude.

The first cellular phone in modern currency cost something like $15,000. At that price, the market for it would be orders of magnitude below the present cellular phone market size. Lower the price 1 to 2 orders of magnitude and we have the present cellular phone market, which is so much larger than what it would have been with the cellular phone at $15,000.

Interestingly, the cellular phone market also seems to be in a period where competition is driving prices upward through market segmentation. This is the opposite of what you described competition as doing. Your remark that the real world is more complicated could not be more true.