Tech sector to suffer dreary revenue reboot in H2

2012 growth expectation is pegged at -2% and 12% in 2013.

According to DBS Vickers, not only is Q2 weaker than expected, it also seems any pickup in 2H is not going to live up to prior expectations, particularly if the underlying economic backdrop continues to be dreary. 

Here's more from DBS:

In April and May, companies were still able to maintain a decisively positive outlook for the next 2-3 months, and many were confident of stronger 2H12. Now, companies are turning cautious given a lack of clarity.

Order visibility is significantly reduced to no more than a month. Moreover, tech bellwethers such as AMD and Applied Material have greatly reduced their orders for the second half of the year, citing weak demand in Europe and even China too.

We are cutting estimates and adjusting price targets across the there is skewed by a very low base in 1Q12. sector to reflect broadening macro pressures on growth. Growth expectation for our tech 2H12 pick up questionable basket to be now -2% in 2012 and 12% in 2013.