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All eyes on Apple's services business in Tuesday's earnings

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.

Apple CEO Tim Cook (L) shows dancer Maddie Ziegler (R) a new iPhone during a product demonstration at Bill Graham Civic Auditorium in San Francisco, California on September 07, 2016.
Josh Edelson | AFP | Getty Images
Apple CEO Tim Cook (L) shows dancer Maddie Ziegler (R) a new iPhone during a product demonstration at Bill Graham Civic Auditorium in San Francisco, California on September 07, 2016.

Wall Street will also be listening closely for any hints on how CEO Tim Cook views President Donald Trump's possible moves, with cash repatriation and the potential for a stock buyback front and center. It's hard to know what Trump might do and how it could impact Apple, said Milunovich.

"Given we don't know what Trump policies will be it's very difficult to model," he said. "We're sticking with iPhone price and modeling from there."