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Samsung and LG lead in handset feature satisfaction in US
Posted: 08-Jul-2004 [Source: Strategy Analytics]

[Newly released research supports changing status of handset manufacturers in US as Asian manufacturers continue to raise performance benchmarks.]

Boston, MA and London, England -- Strategy Analytics' newly released research, "US Mobile Handsets: Samsung & LG Lead in Feature Satisfaction," highlights the changing balance of power as Asian vendors raise performance benchmarks for the cell phone industry, and traditional leaders struggle to keep up.

This Wireless Device Strategies (WDS) service report surveyed 1,000 cellular phone users across the US, and detected a 50 percent decline in those users "very satisfied" with their mobile devices, compared with 2001 levels. The introduction of higher quality, feature-rich devices (clamshell, slider formats, color screens, cameras) has raised mobile user expectations and sparked increasing discontent with older devices. This augurs well for future replacement sales.

Analyst Eddie Tapiero, author of the report, comments, "Samsung, LG, and Kyocera have done an exceptional job improving handset feature values, while Nokia and Motorola have not fared as well. This is a wake up call for all vendors, as consumers become ever more demanding of features and styles, and less bound by traditional brand relationships."

David Kerr, Vice President of the Global Wireless Practice, notes, "More features, more awareness of multimedia opportunity, leads users to compare their relatively limited devices with future multimedia promise. This is a good news/bad news scenario. The bad news is that overall satisfaction is down. The good news is that if vendors can deliver improved performance in displays, user interface, and form factor, there is significant replacement potential. More than ever, vendors need to benchmark performance against best-in-class competition. They must effectively map product feature decisions to user-driven ROI analysis."


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