Industry – Technology/Hardware: Third

Down one notch to third place is the Morgan Stanley team captained by Jasmine Lu, who also pilots a crew that claims a runner-up position for coverage of Taiwan. Based in Hong Kong, Seoul and Taipei, the six analysts report on about 30 stocks and are conservative on the downstream technology segment this year, citing severe pricing competition for non-Apple tablets and slowing demand for that company’s iPhones and for notebooks. However, they see a few bright spots in China’s smartphone market, “where there is robust volume growth coupled with specification upgrades.” Key issues to watch, Lu points out, are Apple’s next product cycle and the prospects for the personal computer supply chain in the second half of the year. Investors should look for companies that “are gaining, or have scope to gain, market share, as well as those with room to increase average selling prices,” Lu says. The troupe is “particularly insightful and far superior to its competitors,” asserts one loyalist.— Carolyn Koo