WESTLAKE VILLAGE, Calif., May 29 /PRNewswire/ -- The average reported
purchase price for wireless mobile phones is now $9 higher than reported in
2007, according to the J.D. Power and Associates 2008 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 the average reported purchase price for a wireless
handset has increased substantially for the first time in two years. The
average purchase price cited by customers for a mobile phone is $101 -- up $9
from just six months ago -- and marks the highest average price paid for a
wireless device since the study's inception in 2003.
The increase in the average purchase price can be partially attributed to
the recent surge in popularity of smartphone devices, such as the RIM
Blackberry, Palm Treo and recently introduced Apple iPhone, as well as music-
enabled handsets, both of which typically have higher price points when first
offered. The current average reported purchase price for smartphone devices is
$208, much higher than the average price paid ($58) for phones with fewer
features.
"As more customers start to upgrade to mobile phones that offer real-time
connectivity and access to Internet content -- particularly those offered by
smartphone devices -- we should continue to see the wireless handset price
point rise," said Kirk Parsons, senior director of wireless services at J.D.
Power and Associates. "Sales of smartphone devices have increased considerably
over the past year to 6.3 percent from 1.7 percent in overall market share at
the beginning of 2007."
The study also finds that another influence on the rise of the average
mobile phone purchase price is a sudden decrease in the number of wireless
customers who say they receive their current phone for free. The percentage of
customers who say they received a free handset has decreased from 36 percent
to 33 percent during the past six months.
"Although 2008 marks the first time since the inception of the study that
customers report a decline in the receipt of free handsets, this is not
unexpected, given the increase in the popularity of smartphones, which have a
much higher price point and tend to be discounted less frequently by wireless
carriers," said Parsons.
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%).
Sony Ericsson ranks highest in overall wireless customer satisfaction for
a second consecutive time with a score of 740 points on a 1,000-point scale,
performing particularly well in all factors. LG (721) also ranks above the
industry average.
The study also finds several key wireless handset usage patterns:
-- Seventy-four percent of all cell phones have a clamshell design-an
increase of 24 percent from 2006. This compares to 21 percent for the
candy-bar style and 5 percent for the slide-cover design.
-- The average reported length of cell phone ownership is 17.7 months --
an increase from 16.6 months in 2006.
-- The most frequently reported reasons customers select their current
cell phone include: pleasing design style (41%); received for free
(25%); easy to use (23%); discounted/reduced price (21%); digital
camera features (18%); variety of features offered and small size (17%).
Volume 1 of the 2008 U.S. Wireless Mobile Phone Evaluation Study is based
on experiences reported by 18,093 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 September 2007 and January
2008. Visit JDPower.com to view customer satisfaction ratings for wireless
service and carrier performance, call quality, customer care, retail sales and
mobile phone handsets.
Overall Wireless Mobile Phone Index Rankings
(Based on a 1,000-point scale)
Manufacturer Index J.D. Power.com Power Circle Ratings
Score For Consumers
Sony Ericsson 740 5
LG 721 4
Industry Average 710 3
Samsung 706 3
Sanyo 705 3
Motorola 705 3
Kyocera 701 2
Nokia 699 2
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a
global marketing information services company operating in key business
sectors including market research, forecasting, performance improvement,
training and customer satisfaction. The company'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 2007 were $6.8 billion. Additional information is available at
http://www.mcgraw-hill.com.
J.D. Power and Associates Media Contacts:
John Tews Syvetril Perryman
Troy, Mich. Westlake Village, Calif.
(248) 312-4119 (805) 418-8103
john.tews@jdpa.com syvetril.perryman@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/corporate
SOURCE J.D. Power and Associates
