Completely different markets for all three companies. Your logic implies there is no market for any luxury (or higher priced) items if a cheaper alternative is available. Real world examples exist: cars, watches, phones, computers, stereo equipment.
There is a lot more to making a purchase besides price, unless price is the only factor you consider.
Makita is going to steal Festool's business for saws with pricing like this. Half price, for comparable quality. Unless you buy Festool because the green color matches your eyes. When you buy a Ferrari or Porsche you get a look. Look is important with cars. And you get a 685 HP motor capable of taking you 0 to 60 in 2.0 seconds. You get something when you spend 10 to 50 times the price of a Camry. When you buy a Rolex or Audemars Piquet, you get looks and solid gold or diamonds. Its jewelry. And you get a Swiss chronograph capable of keeping exact time to .001 second per century. With the higher priced phones you get a bigger screen, more memory, better camera with two lenses. With computers you get the Intel i7 processor and 1 TB SSD. Instead of a ten year old AMD processor and 125 MB hard drive and dial up modem with no camera. You get something when you spend $5000 on a computer instead of $500. With stereos you get bigger amplifiers, speakers that have clearer sound. You get something when you spend more. Sound quality. I have Magnepan and Polk speakers. Spending money on speakers gets you quality sound.
With Festool track saws you spend DOUBLE the price of the Makita saw and you get the exact same performance, functionality. Imagine pick up trucks. I presume a few of the people here own one. Ford, GM, Fiat, all sell more or less identical pick up trucks. Similar motors and luxury conveniences in the cab. They ALL have 8 and 6.5 foot beds. That is how similar trucks are. They all use the exact same bed length. Why doesn't one make an 8.5 foot bed then it can boast it can haul longer lumber? And all pick ups cost the same too for comparable trucks. $20,000 to $80,000. Imagine how Ford sales would be if they doubled the price on their truck? Or GM cut its price in half? They would either lose or steal all the sales. People love their truck for imagined reasons. But when the time comes to write the check, that imagined love will disappear. If Festool keeps its price DOUBLE of Makita for the same quality, they will lose all track saw sales quickly. Except for the people who think the lime green tool color is prettiest.