And to extend your point...
Before Nokia, it was Motorola that made the best phones on the market.
But, they stagnated and Nokia took it over with their innovation.
After building their market, Nokia stagnated and others started taking over from them (Samsung comes to mind).
One can't always be the market leader because of the load of work on the company.
Being the biggest/best producer of something requires a company to supply a lot of product to meet that demand. So, a lot of resource is spent just on maintaining supply required by being in 1st place.
That doesn't leave as much resource or insight into "what to develop next." The leader in a market doesn't have someone else to look at to see what they need to develop... they can only look to themselves.
Competitors behind/outside of the market leader have the opportunity to see what directions that leader is trying out and to follow in step... focusing on how to take those concepts that seem to work and build upon them.
Innovate or replicate... two main strategies of product growth and success for a business.
If you're the leader, you have to innovate to keep your lead. Replicating a competitors innovation means "you're falling behind" and appear to be "failing" (whether that is true or not... it tends to be the perspective of the market).
As a competitor, you can innovate and/or replicate (and improve) to capture some of that market away from the leader.
Constant correct innovation is impossible to maintain forever for a single business.