Luma Partners CEO On Apple's Earnings: 'We've Seen The Pattern Before'

Terence Kawaja, CEO of Luma Partners was a guest on CNBC's Squawk Valley segment and discussed Apple Inc. (NASDAQ: AAPL)'s earnings results, which are scheduled to be released after Tuesday's market close.

According to Kawaja, Apple's story continues to play itself over and over again: the company introduces a new product that sees peak sales only to fade away. He added that heading into Tuesday's print, investors are counting on a new product – whether it be a new phone, device or car.

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Kawaja continued that Apple has historically been "terrible" in its services offerings even though this is a key part of the company's revenue growth expectations moving forward. The company's own applications have not been "well run" and should be paying closer attention to Amazon.com, Inc. (NASDAQ: AMZN)'s success in the services industry.

Moving on to Apple's massive cash hoard, Kawaja suggested recent rumors of an acquisition of Dropbox would be a good move for the company. He also stated that a company of Apple's size would be able to find "good use" for its cash rather than holding it and earning close to 0 percent in interest.

Shares of Apple were trading lower by around 0.69 percent Tuesday afternoon.