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A case study focused on the 5G smartphone market is conducted. Numerical results show that firms may obtain more profits by producing products with newer versions if the consumer preference for product functionality is high. However, if the preference level of consumer is under a certain level, it is not necessarily beneficial for firms who launch new versions of their products to the demand market. In addition, when the competition in market becomes intensive (due to new entrants), giving up the production of previous-version products may be more conducive to existing firms.<\/jats:p>","DOI":"10.1051\/ro\/2022057","type":"journal-article","created":{"date-parts":[[2022,4,22]],"date-time":"2022-04-22T07:53:48Z","timestamp":1650614028000},"page":"1335-1352","source":"Crossref","is-referenced-by-count":1,"title":["Optimal production strategies of competitive firms considering product innovation"],"prefix":"10.1051","volume":"56","author":[{"given":"Xiaoya","family":"Han","sequence":"first","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Yongyi","family":"Zhou","sequence":"additional","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]},{"given":"Xin","family":"Liu","sequence":"additional","affiliation":[],"role":[{"role":"author","vocabulary":"crossref"}]}],"member":"250","published-online":{"date-parts":[[2022,6,2]]},"reference":[{"key":"R1","unstructured":"Bendre, Oppo Find X2 Pro: Gorgeous display and versatile cameras, at a premium (2020). https:\/\/www.counterpointresearch.com\/oppo-find-x2-pro-review-gorgeous-display-versatile-cameras-premium\/."},{"key":"R2","doi-asserted-by":"crossref","first-page":"62","DOI":"10.1016\/j.seps.2017.03.001","volume":"60","author":"Besik","year":"2017","journal-title":"Socio-Econ. 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