This paper aims to evaluate the value of design and development projects using real options analysis and, as a result, to derive important implications for the design and development strategies of Korean mobile phone manufacturers. In particular, when assuming that the value of design and development projects follows a mixed jump-diffusion process, we demonstrate that project uncertainty and development costs become two critical variables in valuation. Furthermore, this paper shows through the model that in situations where future uncertainty exists, an aggressive strategy provides more options in the development process, and therefore generates greater profits in markets where future outcomes are difficult to predict.