A portable electronic device includes a processor and a detection mechanism operable to detect one or more characteristics relating to how a user handles the electronic device. The processor is operably coupled to the detection mechanism and operable in accordance with stored operating instructions to: determine, based on the detected characteristics, which limb of the user possesses the portable electronic device; and control at least one function of the portable electronic device taking into account which limb of the user possesses the electronic device (e.g., which limb of the user is holding or secured to the electronic device). According to one embodiment, the processor may further determine a reference position for the portable electronic device (e.g., a position of the device at rest) and compare one or more of the detected characteristics to the reference position to determine which limb of the user possesses the electronic device.