The first Test ended in a disappointing 38-16 defeat but Davies' was a lively replacement for Phillips, breaking away in a move that nearly led to a try.
And Phillips is well aware that he faces a battle to make sure he remains ahead of Davies in the pecking order.
"We've got great competition throughout the squad really and at nine especially," said Phillips.
"It's just great to have competition and people pushing you all the way.
"Everybody knows Gats [Gatland] doesn't shy away from putting relatively so-called big names on the bench.
"It's whoever's best for the job and as simple as that really."