Then what is the outcome? That their product becomes cheaper!

Yup. "Innovation" is what we're told is the secret sauce as to why capitalism is the greatest economic system ever. A capitalist innovates and implements some better process or equipment because even if it eventually causes the rate of profit to remain unchanged, before that happens the capitalist is able to make super-profits. But as capitalism moves to ever-increasing degrees of monopoly, that innovation advantage completely dries up.