Though U.S. demand is starting to show signs of improvement, emerging markets remain "extremely challenged," says John Chambers at Cisco's (CSCO -2.4%) annual analyst meeting. Those comments are helping Cisco add to the losses they saw yesterday following a Citi downgrade.
Cisco reported a 12% Y/Y drop in emerging market orders for its Oct. quarter, and 18% order drops for both China and India. John Chambers admitted at the time the NSA scandal has affected Cisco's Chinese sales, but insisted it's not a major issue elsewhere.
Yesterday, an IBM exec provided a somewhat different macro take than Chambers, asserting the European macro climate is improving but adding North America remains "a little more uncertain."
Chambers also issued cautious macro commentary in September.
Meeting webcast. Presentations: I, II