Gene Munster On Apple's 2018 Outlook

Apple Inc. (NASDAQ: AAPL) hit an all-time high of $177.20 on Monday, but a downgrade from analysts at Nomura sent the stock lower Tuesday.

The Expert

Wall Street analyst-turned-venture capitalist Gene Munster, managing partner at Loup Ventures. 

The Thesis

Apple, like any other company, will have its period of "ebbs and flows," but Apple's longer-term sentiment remains favorable, Munster said as a guest during CNBC's "Squawk Alley" segment Tuesday. 

Part of Apple's favorable growth profile for next year is the services business, which accounts for 15 percent of revenue but is growing at a 20-percent-plus rate, Munster said. He said he expects the iPhone average selling price for at least the next few quarters to be $740, $35 higher than the Street's estimate.

While there will be fluctuations in Apple's business ahead, the only move for Apple's stock is higher, Munster said. 

Separately, Munster said in a brief research report over the weekend that the iPhone X will reach a global supply and demand equilibrium in the middle of January. This implies that Apple's March ending quarter will see a "small bump up" from the December ending quarter.

Price Action

Shares of Apple were trading lower by more than 1 percent Tuesday afternoon.

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Photo courtesy of Apple.