You're ignoring what I said in the first part, which is that consumers get more features faster. You're right that prices won't necessarily drop, but consumers are still getting more bang for their buck so the benefits are still there.
And competition between companies ensures that no, the profit margins in the industry don't go up in the long-term. You can look up corporate profit margins yourself. They can go up briefly at times and they can go down, but there's no long-term trend of profit margins increasing over the decades. Competition is alive and well to ensure that benefits do indeed go to consumers in most cases where there aren't monopolies that need to be regulated.
And competition between companies ensures that no, the profit margins in the industry don't go up in the long-term. You can look up corporate profit margins yourself. They can go up briefly at times and they can go down, but there's no long-term trend of profit margins increasing over the decades. Competition is alive and well to ensure that benefits do indeed go to consumers in most cases where there aren't monopolies that need to be regulated.