How can semiconductor chip company can get profit if the chip price always plummet after a few months?

How can semiconductor chip company can get profit if the chip price always plummet after a few months and they have to invest to produce stronger and faster chips right away for the generations of chips? I also wonder about flat-screen TV. if it cost $500 to make a TV, how can they after a year with price drop... show more How can semiconductor chip company can get profit if the chip price always plummet after a few months and they have to invest to produce stronger and faster chips right away for the generations of chips?
I also wonder about flat-screen TV. if it cost $500 to make a TV, how can they after a year with price drop start to sell less than that. Labor, electricity and equiption coat are not likely to go down?
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