iPhone Top Smartphone, Then LG & BlackBerry - LG Top Handset Reports JD Power

By Contributor Wireless and Mobile News on October 11, 2009 10:19 AM

Smartphone satisfaction is improving while mobile phone satisfaction is decreasing according to the J.D. Power and Associates 2009 Wireless Consumer Smartphone Customer Satisfaction Study-Volume 2 and the 2009 Wireless Business Smartphone Satisfaction Study.

iPhone leads for both business and consumer smartphone satisfaction, followed by LG and BlackBerry. Smartphone owners are giving up their landlines, want Wi-Fi and download entertainment/business apps.

In the Traditional handset market, LG leads in satisfaction.. Customers who "buy" free phones are least satisfied.

Apple ranks highest among manufacturers of smartphones used primarily for personal reasons, with a score of 811, and performs particularly well in ease of operation, operating system, features and physical design. LG (776) and RIM BlackBerry (759) follow Apple in the rankings.

Among customers who use their smartphones primarily for business purposes, Apple ranks highest with a score of 803, followed by RIM BlackBerry (724).

Satisfaction among consumer smartphone owners has increased by 14 index points (on a 1,000-point scale) from just six months ago, while satisfaction among business owners has increased by 43 index points from 2008 as these devices have become more stylish, customizable and user-friendly.

The studies also find the following key wireless handset usage patterns:

Among consumer smartphone owners, 22 percent want Wi-Fi capability in their next handset, while 21 percent want touch-screen capabilities and 17 percent want GPS capability.
More than 40 percent of consumer smartphone owners report entirely replacing landline calling with mobile phone calling, while only 27 percent of traditional handset owners have done the same.
Among business smartphone owners, more than one-half report downloading third-party games for entertainment, while 46 percent report downloading travel software such as maps and weather applications-indicating business users are also integrating their devices into their personal lives. In addition, nearly one-half of owners (46%) report downloading business utility applications to increase productivity.

Wireless Traditional Mobile Phone Findings
The study finds that wireless carriers are offering deep discounts on traditional handsets, with 43 percent of traditional mobile phone owners, on average, reporting they received their handset free of charge. Satisfaction is significantly lower among owners who receive their handsets for free. Among these owners, satisfaction averages just 693, compared with 713 among owners who pay for their traditional mobile phone.

Among traditional mobile phone owners, overall satisfaction has declined by six index points from April 2009, likely as a result of heightened awareness among traditional mobile phone owners of advanced features available on smartphones.

LG ranks highest in overall wireless customer satisfaction with traditional handsets with a score of 723, performing well across all factors, particularly battery function, features and operation.

More Cheaper Smartphones Are Selling

The proportion of consumers who purchase more affordable smartphones (those costing less than $100) has significantly increased among most of the manufacturers included in the rankings, compared with the previous wave of the study six months ago. This indicates that wireless carriers are discounting their devices to attract new customers who are willing to pay for more costly service plans.

These three studies measure customer satisfaction with traditional wireless handsets and smartphones across several key factors. In order of importance, key factors of overall satisfaction with traditional wireless handsets are operation (30%); physical design (30%); features (20%); and battery function (20%). For consumer smartphones, key factors are ease of operation (30%); operating system (22%); features (21%); physical design (18%); and battery function (9%). For business smartphones, key factors include ease of operation (29%); operating system (23%); physical design (21%); features (16%); and battery function (11%).

"Satisfaction is notably lower among owners who receive their handsets for free, because these phones often do not offer the full suite of features that owners desire," said Parsons. "When fewer features are available, usage rates also decline, which translates into lower brand loyalty. Offering extensive features that owners can integrate into their daily lives may foster brand loyalty to both the phone manufacturer and wireless carrier, and ultimately result in a more rewarding and satisfying owner experience."

The 2009 Wireless Consumer Smartphone Customer Satisfaction Study-Volume 2 and the 2009 Wireless Traditional Mobile Phone Evaluation Study-Volume 2 are based on experiences reported by 12,595 traditional mobile phone and 3,221 smartphone owners who have used their current mobile phone for less than two years. The 2009 Wireless Business Smartphone Customer Satisfaction Study is based on experiences reported by 1,148 smartphone owners who use their smartphone for primarily business purposes. All three studies were fielded between January and June 2009.