Mikkel Stern-Peltz & Jim Armitage
December 29, 2013
The National Security Agency scandal exposed by whistleblower Edward Snowden has cost American technology companies billions of dollars in lost revenue as governments and companies in its important export markets of Asia refuse to entrust the handling of sensitive data to US companies. An analysis of financial filings from technology giants IBM and Cisco by The Independent on Sunday reveals the two businesses have seen sales slump by more than $1.7bn (£1.03bn) year-on-year in the important Asia-Pacific region since Mr Snowden revealed in June that US companies had been compromised by the NSA’s intelligence-gathering in the clandestine Prism programme.
“US companies have seen some of their business put at risk because of the NSA revelations,” said James Kelleher of equity research firm Argus Research.
China is high on the list of those countries now shunning US companies. Mr Kelleher said this may be payback for the US government saying it did not trust China-based Huawei to be independent from Chinese military and intelligence agencies. Despite operating in every other major country, Huawei, the world’s biggest manufacturer of telecommunications equipment and a privately owned Chinese company, has been prevented from winning major communications contracts in the US.