Apple is making moves to cash in on different services and it has been buying smaller companies to help it in that area, Milunovich said, who also upgraded his rating to "buy" from "neutral" on Tuesday.

(Read more: Why Apple could be the big holiday shopping winner)

On Monday, for example, the company confirmed that it acquired Topsy Labs, a social media analytics company.

"They are looking for new technologies, and perhaps technologies like the Topsy acquisition that maybe helps their services side," Milunovich said. "We continue to think of Apple as primarily a device company, but I think they are potentially looking to monetize services, some of those acquisitions fit into that (category)."

http://www.cnbc.com/id/101243348