So in effect you claim that cpu demand is inelastic. Just like the market for drugs or gasoline etc. First, I disagree with the premise that demand is inelastic. However let's assume it is. That is true only in the short run. In the long run that only drives people to look for alternatives, like alternative energy (wonder why they call it that?), or drug substitutes etc. Again their practices are myopic. Proof is in the numbers.That's because people move up in SKUs. You are not going to see more sales due to cheaper prices. Look at GPUs as well, anything under 200-250$ pretty much doesn't sell. AMD isn't selling more CPUs either. They are also in a constant case of the newer model sells less than the old.
You are not getting those back to PC that just need to check email and browse a few pages. Their smartphone is plenty for that.