Which Tech Companies Are Most Reliant on China?

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July 19 (Bloomberg) -- Bloomberg Contributing Editor Paul Kedrosky discusses the week in tech earnings and the reliance of tech companies on China with Cory Johnson on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Would you look at these quarterly numbers -- when you look at these quarterly numbers and see that justice, the bigger picture might be missed here.

China has the most of all.

It is easy to started telling stories about microsoft screw ups and everything else that is going on, the transition to mobile.

Was a lot of investors seem to be missing is the incredible growing of s&p 500 large-cap high-tech companies as a key marketplace.

China -- it is the most china dependent sector.

Among those companies do have microsoft, intel, qualcomm.

As much as anything else explains a wide this across-the- board gap has happened in all of these large tech companies.

It is too easy to ply the mobile brush here.

It has more to do the macro factors out there.

People are not used to applying to tax.

A miss backup for minutes.

When you you think about economics will do in china among my mind goes -- china, my mind goes to basic materials.

When it comes to a slowdown in china, and a wonderful chart you found.

You already tweeted out.

It really shows us there is a very different type of impact.

The economist have this index which is something you would see on light night -- late-night television.

It is a whole different thing.

Totally different.

Different commercial.

The idea is, the really powerful one is you can segregate companies, dependency on a geographic area.

It is important to look at the impact of china.

You come to the realization it is not about raw materials and what is going to happen to the currency.

It's a story about what is happening to the most dependent companies on the china economy.

It is, technology.

Most of the companies are already troubled like microsoft.

Is tablet problems.

This fixes a layer against the top.

Many of the large cap tech companies.

Where would you see this in terms of the biggest impact within technology is marked those companies that are ready have had went.

China not completely fallen off the map.

Do you look for those companies, the worse companies in technology, and why?

Is a good starting starting point.

If you look at the graph that is based on, you will see quickly it is microsoft, intel, and ibm entered the most dependent -- that are the most dependent across-the-board.

If you look across north america, the platform is largely seen as reminiscent of 1994 or something like that.

The markets where they continue to find penetration success in asia and his rapid development has gone ahead.

These are the places where microsoft has had some success which bolstered their business.

Now all of a sudden, this is a complete turnaround.

Those are the places i would look first area less so on the semiconductor and a more on the direct consumer connection.

What about apple?

Ever report the next week.

That opened a bunch of stores in china.

-- they will report next week.

-- they have opened a bunch of stores in china.

What should we expect from them?

It is hard not to, it is hard to imagine how they do not have exactly the same headwind as everybody else.

They are facing all the same forces.

China is the group rick -- biggest growth market place.

Maybe everything changes.

In the current quarter, it is difficult how these factors do not hit them in the same way.

My expectation is we will get the same story especially on the top line.

Speaking of dependency.

Pogo trotsky.

This text has been automatically generated. It may not be 100% accurate.


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