Iterative cost reduction causes collapse of UX quality

One can always keep shaving cost by 5% each iteration, each time yielding with a 10% drop in quality of user experience.
That's not impressive at all, and continuing in that course will eventually kill your company.
What is instead impressive and profitable is spending 10x the money, and using those resources to get 100x the UX quality.
That is one of the lessons of the iPhone.