chanchan, have you ever used a Meizu or Xiaomi phone? I would try to get some time on one before stating that they don't innovate. I already gave two examples for Flyme (SPDIF audio, which no other phone has, and the best Android web browser I've used). MIUI is similarly creative in how it operates. Both store apps in an unusual way and Flyme has a fantastic onboard file manager. Heck, look at what BBK is coming out with
Meizu and Lenovo have their own app stores. I don't know for sure if there is a general MIUI app store, but I think there is. I don't speak Chinese and can't make use of these app stores, but conveniently enough my MX (like virtually all current Chinese phones) comes with Google Play Store already on it.
My point with all of this is not to say the Chinese are the be all, end all of smartphone makers, but they are doing a whole lot right and they're doing it very quickly. Many only came into the smartphone business within the last few years. Companies like Nokia, who are struggling right now, would do well to borrow from some of the business tactics of these quality Chinese companies to get their name out there again in a positive light. The only ways to do that, though, will be to either price very aggressively to make people more financially
interested in trying a Windows phone, or to lose the exclusivity and offer Android phones too. Since they're too tied up in Microsoft to lose the Windows 8 exclusivity, they pretty much have to lower their prices to stay relevant and to grow interest in Windows 8 (before anyone says they can't lower prices too much, remember just how high the markup is on most of these phones).