J.D. Power and Associates: Handset customers are keeping their mobile phones longer

According to J.D. Power and Associates 2007 U.S. Wireless Mobile Phone Evaluation Study, the average reported length of time a customer owns their cell phone has increased by 5% to 17.5 months, an increase from 16.6 months since fall 2006. The study also finds that thanks to the carriers’ incentives, the cell phone price has dropped from an average of $103 in 2002 to $93 in 2007.

Furthermore, the study measures customer satisfaction with 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%). Interestingly, Motorola (NYSE: MOT) and SANYO (OTCPK: SANYY) tie to rank highest in overall satisfaction, with Motorola performing particularly well in the physical design, operation and features factors. On the other hand, SANYO received 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. Sony Ericsson (NYSE: SNE), Nokia (NYSE: NOK), Audiovox and Kyocera (NYSE: KYO) are ranked bellow the industry average.

The study also finds that customers prefer clamshell form factor — 61% percent of all cell phones owned have a clamshell design, while candybars and sliders were owned by 29% and 2% of the customers respectively. In terms of features, customers most frequently use: speakerphone (51%); camera capabilities (35%); services to send/receive short messages (22%); and gaming (16%).