Looking to do this as well. Would like to sort by company ( which I've done on my last 4 Windows Mobile phones) or last name.
TTT!
Unfortunately, no. Like Gmail's own contacts interface in the web version, Android's contacts app cannot sort by last name or company; the names are just sorted as if they were single strings, 'First Last.' This was true in Android 1.x, and seems to be true in Android 2.x, too. Generally, the suggested solutions are just to use the 'search' feature to start typing a contact's name at the Home screen, and then tap to dial them.
You're not the first to hit this problem, though!
http://forum.androidcentral.com/android-help-how/313-sorting-last-name-contacts.html
http://androidcommunity.com/forums/f41/contact-sorting-24052/
I would imagine typing their last name first as you save them as a contact would effectively list them in alphabetical order, starting with their last name.
Sorting automatically by last name is not an option, unfortunately.
Start a new topic or ask questions in the open forum.
