[sigmoid10]

Nope. In free market theory (=perfect competition, no barriers to entry, unlimited buyers etc.) prices are set as the equilibrium where demand equals supply. Supply ends up being equal to marginal cost in the mathematical limit. So in this limit, companies no longer make profit because if they charge cost+epsilon, they will loose demand to other suppliers. That's literally what you learn in economics 101. Of course in the real world you won't reach that limit, but getting to it within first order is still very good for consumers. The further you go away from this free market state, the more companies can extract what consumers "are still willing to pay" (irrespective of their cost) as you say. The opposite limit is the monopoly, where consumer welfare doesn't matter at all and companies can set their prices to maximise their own profit, because they don't need to adhere to any supply curve. They can literally charge extra until people go broke for inelastic demand curves like those of basic utilities (which phones are becoming more and more).