The ‘Snowden effect’ In China

Edward Snowden’s revelations about NSA spying have most led to political fallout so far, but analysts have worried about how much the ‘Snowden effect’ could hurt tech companies’ revenues abroad. Most large-cap tech companies have blamed weak numbers on macro conditions, but looking at the changing market share in China could give a better indication of what such a loss of confidence looks like.

“We believe the fallout from the NSA revelations for enterprise technology companies will be felt first, and most acutely, in China,” write Bernstein Research senior analysts A.M. Sacconaghi Jr. and Mark L. Moerdler. “China has been pushing...