Formerly high-flying mobile-phone makers—HTC, Nokia, a Taiwanese firm, and Research in Motion (RIM), the Canadian maker of BlackBerry devices all faced the competition brought by latest iPhone.

Nokia hope to come back with its new smart phone Phi, and because this time Nokia bets on Microsoft’s new software.

Making mobile phone has always been fast-pace business, which has strong buyers power, high supplier power, low threat of new entrants, high threat of substitute and high rivalry. Within that business, a new os in the market would be really hard especially when android and ios continues innovation.

Nokia need to seek something new and compete by approaching to lower price by using the cost leadership strategy to defend other substitutes.

Compared to Nokia,  HTC set this year’s objective to achieve stable growth. As a late start smart-phone company,  HTC has established a strong brand image and has huge amout of consumers especially in China, but it also face problem, and if it wanted to maintain market share, it would have to depend on innovation.

In conclusion, phone companies really have to innovate and provide new services, and the company fails to follow the taste of consumers would be left behind.