Even if production costs in China are 80-90% less than they are here, I highly doubt anyone is going to see a drop in the price of tennis balls.
But should we have seen a rise? How many other countries outside of the US are paying much, much more per can than the US? Most if not all and by a pretty large margin too. Believe it or not but there are not large profits to be made in manufacturing. You'd be surprised at just how slim the margins are.
In some cases, the "Wal-Mart" effect has led to businesses really losing their ability to call some shots as once you get involved with Wal-Mart you almost have to devote your entire business to them. There are videos about Wal-Mart and this effect on YouTube. Wal-Mart dictates terms and if they aren't met they drop you in favor of someone who can. It doesn't matter if those terms are reasonable or unreasonable (it's arguable if they are at times). As Wal-Mart is often times the only player in town....well, now you see the problem.
What I'm curious to see is how the price of regular Penn Championship is going to be affected in locals outside of dept. stores (ie traditional Penn Championship quality if it's true about dept stores getting Tier 3 quality). Will it stay at $1.99 seen as seen in a lot of places? I just gone done talking to my local tennis shop about whether or not their Grand Rapids location (the bigger store) carried Dunlop Grand Prix balls. They won't carry them as the Wilson US Open are $2.99 which is the same price as the Dunlop Championship ball they do carry. Part of the reason for the lower cost of the Wilson US Open balls is because of a dept. store here called Meijer which carries the WUSOpen balls for $2.99. Interestingly enough, it is also their top selling tennis ball even though the Penn and Wilson Championship balls are $1.99.