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Tech sector facing dollar headwinds: Expert

Dollar headwind for tech earnings

Expect tech earnings for the first quarter to be up thanks to Apple, but the sector is facing headwinds that will drag it down in the second quarter, Patriarch Equity CEO Eric Schiffer said on Tuesday.

"Clearly one of the biggest [headwinds] is the dollar. You've got hardware companies, you've got semiconductor companies that are taking it on the chin. Intel is a good example of that, " Schiffer said in an interview with "Power Lunch. "

Intel cut its revenue forecast for the first quarter by almost $1 billion last month. It cited currency concerns among its reasons. HP has also forecast its full-year earnings well below Wall Street's expectations due to the surging greenback.

On top of that, the industry is also facing concerns over cybersecurity, he added.

Schiffer expects tech earnings to be down 1 percent in the second quarter.

However, Apple will propel the sector's earnings higher for the first quarter, he said. He anticipates earnings to be up 1.71 percent over the same time last year.

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"Apple, frankly, is the quarter for tech. So if you took out Apple, tech would likely be negative, which is huge," Schiffer said.

He doesn't think the Apple Watch will be the "stellar, huge hit" people are expecting.

"It's not going to be as impressive," he said. "But I don't think you're going to see the impact of that probably for a few quarters."