Steve Case says Apple to tackle health after iPhone innovation slows

Steve Case on Apple's 'third wave'

American entrepreneur Steve Case said on Wednesday that Apple must figure out the next big category of consumer technology as innovations for smartphones begin to slow.

Case said he thinks Apple will take a shot in the health devices category, and it should because health is "ripe for innovation."

Turning to another category makes sense because "the reality is that phones, not just Apple's, but others, have stabilized a little bit," Case said on CNBC's "Squawk on the Street."

"The innovation that happens in the early phase of things, whether it be the phone or the personal computer, even half a century ago, things like the car ... the first few years there's a lot of innovation, " said. "After a while, the pace of innovation slows a little bit."

The leading technology company's iPhone sales are expected to decline compared with sales of previous years. And analysts say consumers aren't as excited for this year's model due to reports that the phone will see little design changes. Apple is expected to unveil its next generation iPhone on Wednesday.

Apple's stock was trading slightly lower at $107.40 a share Wednesday morning.