NSA spying hurts business of large US hardware makers
[Commentary] With evidence mounting that National Security Agency spying has damaged the business of some of the largest US technology companies, the question now is how long it will take them to win back the trust of overseas customers. Without any changes in U.S. law that restrict the agency's ability to use tech for surveillance, the answer may be "never."
That may be the case in China, where IBM, Microsoft, Hewlett-Packard and, most notably, Cisco Systems have reported substantial drops in sales since the NSA surveillance program came to light. Yet sales are falling for several of these giants not only in China but in other parts of Asia and in other developing economies, too, and the trend may have as much to do with privacy concerns as with the pace of global economic growth. If China's new rulers believe U.S. hardware and software makers are helping a strategic rival to spy on it, US companies will likely see sales there continue to fall. And if the same concerns grip other overseas customers and governments, American tech executives may have a tough time convincing them otherwise.