Earlier quoted context omitted.
First, let's take the Shuttle off the table, which is no longer in service and was by far the most expensive launch vehicle in extensive service in history. Right now, the price of a Falcon 9 launch is around $50mil, this translates to $4.8/g to LEO or $16.7/g to GTO (which is where most satellites go). This compares very favorably to the price of other western launchers (Atlas V: $18/g, Ariane 5: $21/g, Delta IV: $1…
> as competitive pressure to lower their profit margin increases Assuming current incumbents are capable of doing that. That's a big if. If their competition can't effectively compete, their profit margins will remain steady allowing them to develop more interesting vehicles/capabilities.
Also, to some degree as the space tourism market gains traction there will be some amount of competitive pressure on the costs of orbital tourism from the sub-orbital market (Virgin Galactic and others). More so, once SpaceX has proven their business model it will drive a lot of investment capital to their competitors (both old and new) to try to level the playing field.