Apple (AAPL) - Get Report  is in a good position with its iPhone 7 now but eventually it must rely less on iPhones.

"They need to eventually come out with something outside of the iPhone," said Angelo Zino, an equity analyst at CFRA Research. "But when we look at the company today and over the next two years, we continue to think they are well positioned with the current iPhone 7 launch as well as the next generation device amid the 10-year anniversary of the iPhone next year."

Apple sold 45.5 million iPhones during its most recent quarter, a decrease of 5% year over year, but still slightly above Wall Street's forecasts. But that figure doesn't tell the entire story. The quarter "only included nine days of the iPhone 7; most of the quarter came from the prior [iPhone 6S launch], which was lackluster," he said.

Apple expects revenue for its current quarter to range between $76 billion to $78 billion, which would be a slight climb from the $75.9 billion the company booked in the year-ago period. This quarter includes the all-important holiday shopping season, which is expected to lift the retail sector across the board. 

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Zino said services, such as Apple Music and its App Store, will help the technology giant diversify its revenue streams. "The problem is that services only represent about 13% of their revenue, but it's growing pretty quickly," Zino said.

In fact, services was the only Apple revenue stream to show year-over-year sales growth, rising 24% to $6.3 billion. In a note Tuesday, TheStreet's Jim Cramer, whose Action Alerts PLUS portfolio includes Apple, and co-manager Jack Mohr said they were "encouraged" by the "explosive growth" in Services. 

Revenue from the iPhone declined 13%, iPad revenue was flat, Mac revenue declined 17% and Apple's other products stream, which accounts for the Apple Watch and Apple TV, among other products, declined 22% year-over-year.

iPhone revenue still represents just over 60% of Apple's total revenue.

As for its stock, which is up 8% year to date, Zino is bullish and has a 12-month price target of $130. The stock trades just under $114.