Stunned tech sector ponders future
AFTER disbelief, anger and grief, the US tech sector is looking to come to grips with the presidency of a man described by many of its leading lights as a “disaster” for innovation.
The major US technology companies, almost uniformly opposed to Donald Trump’s candidacy, saw huge stock declines in the wake of November 8, but most have now rebounded to near their preelection levels.
Some observers are saying it makes little difference who is in the White House, and others argue Trump is unlikely to carry out the promises – and threats – he made during a bitter campaign.
Trump sent shivers through Silicon Valley during his election bid by pledging to squeeze trade from China, clamp down on immigration which is critical to many tech firms, and even wa r n i ng t hat on l i ne giant Amazon could have “a huge antitrust problem” if he were elected.
Close to 150 tech icons – including founders of Apple, Wikipedia and Reddit – penned a letter in July warning the Republican nominee would be an “disaster for innovation”.
In the meantime, any negative impact could be offset by Trump’s pledge to lower taxes on capital repatriated from overseas, which could be a boon for Apple, Google and others and encourage investment in the US, analysts said.
‘You guys are crazy’
The tech sector holds t he lion’s share of an est imated $2.5 trillion held by US firms overseas.
“There could be a lot of money that is repatriated by tech companies,” said Bob O’Donnell, analyst and consultant at Technalysis Research in Silicon Valley.
“If they could use it for job creation, that could be interesting.”
While tech leaders “did a lot of soul searching” after the election, O’Donnell said “they are smart businesspeople and they realise they have to work in this new environment”.
Although Trump has said little about his agenda for the sector, O’Donnell noted that “tech is a huge part of the economy and you can’t ignore it; but things that might be viewed as special privileges might be taken away.”
Some are concerned that a Republican administration may seek to roll back so-called “net neutrality” that prohibits broadband firms from playing favourites, which could mean difficulties for video operators like Netflix and Amazon.
Many tech leaders have had to take a new tack after an emotional campaign that featured ugly rhetoric on both sides.
Apple chief executive Tim Cook said in a memo to staff that the company’s “North Star hasn’t changed” and that “the only way to move forward is to move for ward t ogether”, according to the Wall Street Journal.
Facebook fou nder Ma rk Zuckerberg br ushed of f t he vote by telling a tech conference t hat “most progress . . . is made by private citizens,” a nd t hat “it would not be r ig ht to say [t he elect ion of Trump] changes t he f undamental arc of technolog y or progress over time”. Others were less diplomatic. Box founder Aaron Levie tweeted after the election, “You know those times where we watch other countries and are like ‘oh man you guys are crazy’. S— that’s us now.”
Tech investor Anil Dash wrote on Twitter: “I am not moving to Canada, not surprised by white supremacists & misogynists, and not afraid of Donald Trump. We have got to get to work.”