It’s called a “blowback”……
Obviously related articles:
- Cisco expects 10% sales dive over US spying (pcpro.co.uk)
- Cisco warns US spying fallout hitting revenue in China (news.in.msn.com)
- US technology companies including Cisco and IBM face unprecedented difficulties selling services in China due to spying fallout – @Reuters (reuters.com)
- Cisco’s disastrous quarter shows how NSA spying could freeze US companies out of a trillion-dollar opportunity (rhythmicam.wordpress.com)
- Why Facebook just had a blowout quarter (qz.com)
- The NSA Leaks Have Been Crushing US Tech Sales In China (businessinsider.com)
Cisco(s csco) has shocked financial analysts — who were expecting healthy growth — by predicting a 10 percent sales slump during the current quarter. There are a variety of reasons for this, but the standout one is the backlash in emerging markets against the activities of the U.S. signals intelligence agency, the NSA.
This shouldn’t have come as a surprise. Communications infrastructure is absolutely central to the surveillance scandal, and that’s Cisco’s business. An American networking firm was never going to come out of this mess well – and the whole infrastructure business is in a state of upheaval anyway — but the figures are sobering nonetheless.
In the last quarter, on which Cisco was reporting on Wednesday, the company saw a sudden 21 percent revenue drop in its top 5 emerging markets: 25 percent down in Brazil, 18 percent down in India, Mexico and China, and 30 percent down…
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