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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