J.D. Power Reports: Wireless Smartphone Manufacturers Struggle to Differentiate Themselves; Price Is Increasingly Important for Customers - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

J.D. Power Reports: Wireless Smartphone Manufacturers Struggle to Differentiate Themselves; Price Is Increasingly Important for Customers

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SOURCE J.D. Power

Apple Smartphone Devices Rank Highest among Tier 1 Wireless Carriers

WESTLAKE VILLAGE, Calif., April 24, 2014 /PRNewswire/ -- As wireless manufacturers  have struggled to find ways to differentiate themselves with advanced features and technology since 2011, price has become an increasingly important driver in the device selection process, according to the J.D. Power 2014 U.S. Wireless Smartphone Satisfaction StudySM-Volume 1 released today.

J.D. Power corporate logo.

"Over the past three years, wireless OEMs have focused on advanced technology and features to edge out the competition, however, with such similar technology across carriers and devices offered, price is becoming a key component in the selection process," said Kirk Parsons, senior director of telecommunications services at J.D. Power. "To get ahead of the competition and satisfy customers, manufacturers must meet the expectations of customers, ensuring the features they want next are intuitive and rewarding. Providing an easy-to-use, yet powerful operating system with the ability to customize applications to suit individual needs is essential to providing a high-quality and positive wireless experience."

KEY FINDINGS

  • More than one-fifth (21%) of smartphone owners cite "price" as the main reason they chose their particular device, an increase from 13 percent in the 2011 U.S. Wireless Smartphone Satisfaction Study-Volume 2.
  • While smartphone owners continue to cite "features" as the primary reason for selecting their device (35%), the rate has declined significantly from the 2011 Vol. 2 study (57%).
  • Reasons for purchase have an impact on customer satisfaction and future loyalty. Selecting a smartphone device based on price generates significantly lower levels of satisfaction (808 on a 1,000-point scale) and repurchase rates (18%) than selections based on product-specific reasons such as operating system (860 and 35%, respectively).
  • In 2014, the average purchase price for smartphone devices has increased and owners are less likely to receive a discount. On average, smartphone owners indicate that their device cost $202 in the 2014 Vol. 1 study, an increase from $174 in the 2011 Vol. 2 study. More than half (52%) of owners have received a discount on their smartphone in 2014 Vol. 1, compared with 60 percent in the 2011 Vol. 2 study. 
  • When asked which features they would like on their next device, smartphone owners most often cite seamless voice control (36%); built-in sensors that can gauge temperature, lighting, noise and moods to customize settings to the environment (35%); and facial recognition and biometric security (28%).  
  • Overall satisfaction with smartphone devices is highest among AT&T customers (844), followed by Sprint (839); T-Mobile (835); and Verizon Wireless (829) customers. Overall satisfaction among smartphone owners is 837.

The 2014 U.S. Wireless Smartphone Satisfaction Study-Volume 1 is based on experiences evaluated by 13,237 smartphone customers who have owned their current smartphone device less than one year and who are customers of the four Tier 1 carriers. The study was fielded between September 2013 and February 2014. The study measures customer satisfaction in four factors: performance (31%); physical design (23%); features (23%); and ease of operation (23%).

Overall Customer Satisfaction Index Scores

J.D. Power.com Power Circle Ratings

(Based on a 1,000-point scale)

For Consumers




ATT



Apple

850

5

Samsung

846

5

ATT Average

844

3

BlackBerry 

841

3

HTC

827

2

Nokia

827

2

LG

823

2

Motorola

805

2




Sprint



Apple

857

5

Samsung

842

3

Sprint Average

839

3

HTC

837

3

LG

802

2

Motorola

782

2




T-Mobile



Apple

853

5

Samsung 

848

5

T-Mobile Average 

835

3

HTC

816

2

BlackBerry 

812

2

LG 

800

2

Nokia 

797

2




Verizon Wireless



Apple

849

5

Samsung

848

5

HTC

833

3

Verizon Wireless Average

829

3

BlackBerry

822

3

Nokia

820

3

Motorola

794

2

LG

793

2

Power Circle Ratings Legend
5 – Among the best
4 – Better than most
3 – About average
2 – The rest

Media Relations Contacts
John Tews; Troy, Mich.; 248-680-6218; media.relations@jdpa.com 
Syvetril Perryman; Westlake Village, Calif.; 805-418-8103; media.relations@jdpa.com

About J.D. Power and Advertising/Promotional Rules http://www.jdpower.com/about-us/press-release-info 
About McGraw Hill Financial www.mhfi.com 

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