J.D. Power and Associates Reports: Satisfaction with Wireless Mobile Phones Increases Significantly as Customer Ratings Improve in Features and Design

Business Wire, Oct 28, 2004

WESTLAKE VILLAGE, Calif. -- SANYO Ranks Highest in Overall Wireless Mobile Phone Satisfaction

Overall satisfaction among wireless mobile phone owners has increased 5 percent over 2003 -- the first time a significant increase has been achieved on a year-to-year basis since the report's inception three years ago -- according to the J.D. Power and Associates 2004 U.S. Wireless Mobile Phone Evaluation Study(SM) released today.

The study finds customer ratings increased the most significantly over 2003 with the phone's features (increasing 8%), particularly in areas such as the ease of using text messaging and Internet features. Satisfaction with the physical design of the handset has also risen significantly, mainly based on a strong increase in weight and visual appeal.

"With every new feature/service adoption, there is an initial learning curve for consumers to experiment with the full capabilities of their cell phone, causing some initial frustration," said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. "Features that make it easier to learn and understand how to operate specific service offerings such as text messaging and retrieving Web-based data can increase satisfaction performance and enhance the overall wireless experience. However, consumer expectations will continue to rise as cell phone users increasingly rely on the communication functions of their cell phones beyond phone calls."

The study measures satisfaction of customers who have owned their mobile phones for less than two years based on five key factors that impact overall wireless handset performance. In order of importance, these are: features (27%); durability (23%); physical design (19%); battery function (16%); and operation (15%).

SANYO ranks highest in overall customer satisfaction with wireless cell phones, consistently performing significantly above the industry average across all five factors. SANYO performs particularly well in the areas of features, operation and physical design. Following SANYO in the rankings above the industry average are Samsung and LG, respectively.

The study finds several key wireless handset usage patterns:

--Average reported handset purchase price in 2004 is $99 -- an increase from $88 in 2003 and the first increase since 1999.

--Average replacement cycle for a typical handset is 18 months.

--Camera phone ownership has more than tripled, increasing from 4 percent in 2003 to 15 percent in 2004.

--More than one-half of all handsets purchased in the past year have color display screens (57%) -- three times higher than in 2003 (17%).

The 2004 U.S. Wireless Mobile Phone Evaluation Study measures customer satisfaction among the eight largest wireless handset manufacturers and is based on responses from 13,458 households.

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, consulting, training and customer satisfaction. The firm's quality and satisfaction measurements are based on responses from millions of consumers annually. Media e-mail contact: michael.greywitt@jdpa.com or john.tews@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. www.jdpower.com.