Your product only has to be slightly better than that of the competition to be considered the "better" choice.
Scenario: You make a phone that has all the standard features, you know that your competition is buying materials for their screens for 20 cents a unit, and you know that the best on the market is 30 cents a unit, it's in your company's best interest, and for the sake of coming out at a competitive price point to find the screen that is produced at 21-29 cents a unit that is more reliable than the 20 cent screens. This is where all that market research probably comes in handy
