Political tensions with China and Russia mean that US tech companies are facing protracted pressure in what had been two of their most promising growth markets, the chief executive of Cisco Systems has warned.
“Until our countries get along better, we’re not going to see an improvement,” John Chambers said in an interview with the FT. Mr Chambers, who is due to step down in late July after 20 years at the helm, was speaking after the US networking company reported quarterly earnings showing a return to steady growth, driven mainly by sales at home.
A collapse in IT demand in emerging markets has been one of the biggest headwinds for Cisco and other US tech companies in the past two years, as volatile economic conditions and political rivalry have contributed to a sharp pullback in spending. While some commentators initially claimed Cisco was more exposed than others, it quickly became clear that all American IT companies faced the same pressures, Mr Chambers said.