Well, sort of. What actually happens is an item is introduced with good quality, materials etc. It sell well, the volume is established and predictable. Then they purchasing agent looks for ways to reduce the cost of the item, so he (she) pressures the supplier to lower his cost. The supplier then has to reduce his cost by substituting cheaper materials, fasteners, and taking shortcuts in design.
I'm in the auto parts business, and it happens here also. Once the OE builds a part to a certain spec, and thousands are in service, a service life expectancy is established. If the OE part proves to usually last beyond the average life of the car, then the decision is made to lower the spec. No sense overbuilding at additional expense to get an extended service life that will, on average, be wasted.