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Dell hacks revenue forecasts for 2012

Growth estimates bow between 1% and 5%, shares tumble 7%

Dell hacks revenue forecasts for 2012
Dell has pared back its 2012 revenue growth estimate to between just 1% and 5% from 5% to 9%.

Dell has pared back its 2012 revenue growth estimate to between just 1% and 5% from 5% to 9% previously and the announcement sent its shares tumbling by 7%, according to Reuters.

The global No 2 personal computer maker said the slash was due to growing uncertainty about whether government and corporate spending on everything from servers to software can hold up in the face of flagging economic growth.

HP, the world's No 1 computer maker has seen shares shed 1.3% following the announcement.

HP is striving for a turnaround after several disappointing quarters and will report quarterly earnings later this week.

Dell has consistently beaten Wall Street expectations in 2011, a result of expanding its footprint in higher-margin businesses such as servers, storage and computer services.

Dell shares slid 7.65% to $14.60 after hours, from a close of $15.80 on Nasdaq.

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