It all depends on where you will be staying. Best bet, check out Lonely Planet's Thailand/Phuket guide book for recommendations - can't go wrong with it. Also, check out www.travelfish.org for options.
When I'm in Phuket I usually stay around Kata Centre and have found that Fantasy Hill bungalows are fantastic. over 5 years ago
Phuket is a big Island (as big as Singapore). You should probably decide what area you would like to stay first, whether in the hustle and bustle of Patong or in a quiet family area like Karon or Kata. If you are on a budget, then consider Rawai or Nai Harn.
I am a Patong fan, so I advise check out Eden Bungalows. For activities and tours www.phukettravelandtours.com about 5 years ago