The global obsession with HTC, Taiwan's only leading (branded) light in the mobile phone sector, continues, with bankers now weighing in, saying that they are confident the company will meet its sales goals and that its shares are undervalued. This is good news for HTC and at least its staff knows they'll probably keep their jobs. Others, according to reports, may not be so lucky.

We know we shouldn't really listen to anything bankers say these days. Just look at the mess most everything is in (no thanks to, um, bankers). But maybe they are not far off on this call, as a recent report shines a very dire light on the REST of Taiwan's mobile phone industry, namely the guys in the OEM/ODM game and component makers.

"Citigroup is cautious on the outlook for local mobile phone makers, which, along with components suppliers, could face severe margin pressure. 'We take a very cautious view on November sales and expect a sharp decline in December revenue for local handset makers and component suppliers." (Taipei Times).

The list of companies expected to see great suffering includes:

• Foxconn International Holdings (´I¤h±d)--major OEM/ODM player


• Merry Electronics Co. (¬ü«ß¹ê·~)--components maker (and, one would imagine, a not very merry place to work these days).


• Compal Communications Inc (µØÄ_)--"a smart phone maker with Palm and Motorola as its key customers."


Ouch, those are two companies Compal is surely not wishing to be buried with.

Here's to hoping the global economic morass doesn't keep dragging down the mobile industry. It's one of the few areas in which Taiwan has excelled in recent years. But it cannot be propped up by the success of HTC alone. Is there perhaps some lesson that can be learned and extrapolated to save a suffering local sector?

More to come.
--jag 

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