When Apple reports earnings Tuesday afternoon, investors will be looking
at its services revenue, not just at iPhone sales numbers, Confide co-founder and President Jon Brod told CNBC's "Squawk Alley."
UBS analyst Steve Milunovich agreed that services revenue is of growing importance, but noted that Apple is still a hardware company and hardware sales account for 63 percent of its revenue.
"It's a great revenue line ... and helps offset the fact margins are coming down on the iPhone," he told CNBC.
Still, Apple is already teasing ahead to the all important iPhone 8 launch, and UBS expects the company to see double-digit growth in iPhone sales in fiscal year 2016.