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. 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. 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.