Motorola and SANYO Tie to Rank Highest among Wireless Mobile Phone
Manufacturers
WESTLAKE VILLAGE, Calif., May 30 /PRNewswire/ -- The average reported
length of time a customer owns their cell phone has increased by 5 percent
since fall 2006, according to the J.D. Power and Associates 2007 U.S.
Wireless Mobile Phone Evaluation Study(SM) -- Volume 1 released today.
(Logo: http://www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-a)
The study finds that customers are keeping their mobile handsets for an
average of 17.5 months -- an increase from 16.6 months since the last
reporting period (November 2006). This marks the first increase in the
reported ownership cycle since 2002, when the average was 18.4 months. The
increase in ownership tenure is roughly equal across major handset brands.
"One possible reason for this significant increase in the length of
handset ownership is that more customers are initiating or renewing their
service contracts for a longer period -- typically for two years, as
opposed to just one year, which was customary a few years ago," said Kirk
Parsons, senior director of wireless services at J.D. Power and Associates.
"While these longer contracts help wireless carriers recover the costs
associated with offering subsidized cell phones, customers tend to hold on
to their current cell phones longer to avoid termination fees when
switching service, which may ultimately lead to lower renewal rates."
The study also finds that the price a customer pays for their wireless
mobile phone has dropped from an average of $103 in 2002 to $93 in 2007.
The decline is primarily due to discounts given by handset providers and
wireless service carriers to incentivize sales. Currently, 36 percent of
customers report receiving a free mobile phone when subscribing to a
wireless service -- up considerably from 28 percent in the 2002 study.
"It's clear that wireless service carriers are using mobile phones as
bait to increase consumer traffic, applying discounts either through
rebates or free limited-time offers," said Parsons. "The problem with this
strategy is that, in most cases, the discounted handsets being offered are
older models, which typically lack the latest technological advancements or
desired design features."
The study measures customer satisfaction with wireless handsets by
examining five key factors. In order of importance, they are: physical
design (24%); operation (22%); features (20%); handset durability (19%);
and battery function (15%).
Motorola and SANYO tie to rank highest in overall customer satisfaction
with wireless cell phones. Motorola performs particularly well in the
physical design, operation and features factors, while SANYO receives high
ratings in operation and battery functionality. Following Motorola and
SANYO in the rankings and performing above the industry average are Samsung
and LG, respectively.
The study also finds several key wireless handset usage patterns:
* Sixty-nine percent of all cell phones owned are a clamshell design
-- an increase of 19 percent from 2006. This compares to 29 percent
for the candy-bar style, and 2 percent for the slide-cover design.
* Handset features that are used most frequently include: speakerphone
(51%); camera capabilities (35%); services to send/receive short
messages (22%); and gaming (16%).
* More than one-half of all current wireless users compared other handset
brands before selecting their current wireless phone. Those customers
who compare phones during the selection process are more likely to be
satisfied overall with their current handset than those who do not.
Volume 1 of the 2007 U.S. Wireless Mobile Phone Evaluation Study is
based on experiences reported by 21,520 wireless users who have owned their
current mobile phone for less than two years. The results are from the two
most recent study reporting waves, which were conducted in October 2006 and
February 2007. Visit JDPower.com to view customer satisfaction ratings for
wireless service, call quality, customer care, retail sales and mobile
phone handsets.
Overall Satisfaction Scores
(Based on a 1,000-point scale)
Motorola 726
Sanyo 726
Samsung 722
LG 721
Industry Average 718
Sony Ericsson 710
Nokia 705
UTStarcom (Audiovox) 694
Kyocera 685
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is
an ISO 9001-registered global marketing information services firm operating
in key business sectors including market research, forecasting, performance
improvement, training and customer satisfaction. The firm's quality and
satisfaction measurements are based on responses from millions of consumers
annually. For more information on car reviews and ratings, car insurance,
health insurance, cell phone ratings, and more, please visit JDPower.com.
J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies:
Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading
global information services provider meeting worldwide needs in the
financial services, education and business information markets through
leading brands such as Standard & Poor's, McGraw-Hill Education,
BusinessWeek and J.D. Power and Associates. The Corporation has more than
280 offices in 40 countries. Sales in 2006 were $6.3 billion. Additional
information is available at http://www.mcgraw-hill.com.
J.D. Power and Associates Contacts:
John Tews Jeff Perlman
Troy, Mich. Westlake Village, Calif.
(248) 312-4119 (805) 418-8976
john.tews@jdpa.com jeff.perlman@jdpa.com
No advertising or other promotional use can be made of the information
in this release without the express prior written consent of J.D. Power and
Associates. http://www.jdpower.com/corporate
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Related links:
http://www.jdpower.com
http://www.mcgraw-hill.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/20050527/LAF028LOGO-a
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
John Tews, Troy, Mich., +1-248-312-4119,
john.tews@jdpa.com, or Jeff Perlman, Westlake Village, Calif.,
+1-805-418-8976, jeff.perlman@jdpa.com, both of J.D. Power and
Associates
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