- Cisco's (CSCO) FQ1 results earlier this week highlight how major tech firms are feeling the impact of a backlash in China to Edward Snowden's revelations about U.S. spying.
- "All the big U.S. IT companies are concerned," says Jim Lewis, a China and technology expert at the Center for Strategic Studies in Washington.
- Cisco has been the most explicit about attributing the Snowden effect to its falling sales in China; Beijing could be specifically targeting the company due to American hostility to telecom-equipment makers Huawei Technologies and ZTE (ZTCOY) over fears that their products could be used for espionage.
- However, Juniper's (JNPR) experience is that the "The Snowden effect is not real," adding that business in China continues to grow.
- Other companies to suffer in the country recently include IBM (IBM) and Microsoft (MSFT), with the reasons cited including macro-economic factors. IBM might be somewhat inured to the NSA affair, as some of its high-end products face less competition than Cisco's offerings.
Tech giants feel impact of U.S. spying scandal
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