In the recent ongoing trade war between China and USA, the tech industry has faced a midlife crisis. Recently when the USA limited Huawei operations in the country, it took a hit at the economy. China is one of the biggest exporters of smartphones in the USA.
With these events, Cisco was also affected by the trade wars. The company stock fell down to 7% after Cisco reported weaker than expected guidance. Prior to this, it previously dropped by 4%.
“We did see in July some slight early indications of some macro shifts that we didn’t see in the prior quarter,” Cisco CEO Chuck Robbins told analysts on a Wednesday conference call. He also mentioned that the company faced “significant impact” on business in China, due to the ongoing China and USA trade wars.
The CEO stated that the company is not even allowed to participate in the bids. They are not invited to business meetings. The company saw slight early indications of macro shits in July, which the company didn’t experience in the previous quarter.
Cisco is looking forward to introducing its new technological segments, which are based on AI and machine learning. The company is redefining IT infrastructure to manage the complex system of the multi-cloud world.