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Augmented reality will 'give the iPhone new life,' says UBS analyst

The upcoming version of the iPhone is expected to have augmented reality technology for things like facial recognition, and UBS Managing Director Steve Milunovich said the technology will "give the iPhone new life."

With Apple's stock at a record high, Milunovich told "Squawk on the Street" that he's still bullish on the stock.

"Most of us suspect a pretty strong cycle with the iPhone 8, we're looking for about 12 percent unit growth," said Milunovich.

Investors have run hot and cold on Apple stock. Milunovich said part of the problem is the company's recent shift in priorities. "The company has been emphasizing services, but really we should ... look at the installed base of iPhones, which is still growing close to 20 percent and the retention rate, which is 90 percent," he said.

Apple launched several new products today, including its 9.7-inch iPad, a special edition of the iPhone 7 and iPhone 7 Plus, giving investors even more insight into what's ahead for the company.