Apple suppliers in Asia drop after earnings miss

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Shares of major Apple suppliers in Asia mostly fell on Wednesday, after the smartphone maker's quarterly earnings missed analysts' estimates and guidance for the current quarter fell shy of expectations.

Major Taiwanese suppliers and manufacturers of Apple were down, with shares of Catcher Technology, which provides metal casing for the iPhone, closing down 1.27 percent. Large-cap Taiwan Semiconductor Manufacturing Co (TSMC), which makes chips for iPhones, fell 0.95 percent.

Hon Hai Precision Industry, which assembles a bulk of the iPhones and is also known as Foxconn, saw its shares drop 0.87 percent. Apple lens supplier Largan ended down 0.44 percent, while Foxconn rival Pegatron saw its shares initially drop 1.29 percent before reversing losses to finish up 0.43 percent.

Japanese components suppliers including Alps Electric, TDK Corporation and Nidec ended mixed, between down 1.15 percent and up 1 percent. Ceramic capacitor maker Murata Manufacturing dropped 4.42 percent, while shares of Sony and Panasonic slipped 0.46 and 0.63 percent respectively.

In South Korea, LG Display, a key LCD supplier to Apple, saw its shares drop 3.86 percent.

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Stateside, shares of Apple suppliers dropped in after-hours trading, with Skyworks Solutions dropping more than 5 percent.

The Cupertino, California-based tech giant reported fiscal second-quarter revenue of $50.56 billion, down 13 percent from the $58.01 billion reported in the comparable year-ago period. Quarterly net income for the period was at $10.5 billion and earnings was at $1.90 per diluted share.

This fell short of Wall Street's expectation of earnings of about $2 a share on $51.97 billion in revenue, according to a consensus estimate from Thomson Reuters.

Apple shares fell more than 8 percent in after-hours trading stateside, erasing more than $46 billion in market capitalization.

A key area of decline in Apple's quarterly numbers was from Greater China, where revenue fell by 26 percent on-year.

Apple CEO Tim Cook told analysts in an earnings call that currency headwinds hurt sales in Hong Kong. Cook also admitted in the earnings call the smartphone market was not growing, attributing it to a passing "overhang of the macroeconomic environment in many different places of the world."

Second-quarter iPhone revenue dropped 36.36 percent on-quarter.

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Analysts told CNBC on Wednesday the Apple management needs to focus on the services side of the business to counteract the slowdown in the smartphone market.

John Petrides, managing director and portfolio manager at Point View Wealth Management, told CNBC's "Squawk Box" that Apple management "needs to wake up here and stop focusing purely on selling really cool widgets ... [and] focus on the subscription side of the business."

In particular, said Petrides, Apple has to focus on Apple TV and the iTunes platform if it wants to grow. Apple rivals, including Google, Facebook, Netflix and Amazon, are already working to advance their video streaming services, he said.

Others believe iPhone sales will see a short-term uptick once the company releases its expected iPhone 7 model.

Angelo Zino, a senior analyst at S&P Global Market Intelligence, told CNBC's "The Rundown," for Apple to find an acceleration of growth in the stagnating smartphone market, the iPhone 7 needs to have new, innovative features. Some analysts, however, remain skeptical.

Zino said another possibility the Apple management might have to eventually consider will be M&A to expand into new, addressable markets. "With a cash horde north of $200 billion, that wouldn't necessarily be a bad idea."

Everett Rosenfeld contributed to this report.

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