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2016 could be a good year for Apple: Munster

Apple's 'huge lever'

A combination of a few factors could lead to a pretty good year for Apple in 2016, said Piper Jaffray senior Internet analyst, Gene Munster, on Thursday.

A larger iPhone 7, or even a new smaller four-inch one, along with better biometrics, could all help the tech giant have a strong year, he said.

"I think the combination of those two along with the subscription service ... and some new things around Apple Pay, is setting 2016 up to be a good year for Apple," he told CNBC's "Squawk Alley. "

Munster said that Apple is facing the challenge of growing its $240 billion company. "The way you grow it is you look at your biggest product and you try to accelerate sales within that."

Apple makes money off its iPhones by "streamlining the residual value," he said. The company can grow revenues if the time between when people upgrade their phones becomes shorter.

"Apple announced they're going to role this out internationally. We think that's going to be one of the themes ... and ultimately I think that's going to have a positive impact on Apple's multiple," he said.

Disclosures: Neither Munster nor his firm owns shares of Apple.