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NEW YORK (TheStreet) -- In order for Apple (AAPL) - Get Apple Inc. Report to stay in the game, it should consider breaking up its businesses, Carnegie Mellon's College of Engineering Professor Vivek Wadhwa told CNBC's Jon Fortt on "Squawk Alley" Tuesday.

"Based on the value proposition of Apple being integration around software, hardware and services, how could you possibly break it up? Just split the iPhone off from everything else?" Fortt asked.

Apple's break up would be modeled much like Google's when it split its core Internet business from several of its other projects by becoming a subsidiary of Alphabet (GOOGL) in 2015, according to Wadhwa.

Alphabet is able to conduct "radical projects and lease products on their own" while Google handles the operations of its main unit, Wadhwa explained.

"Apple's problem is that it has no new products. The iPhone is now nine years old, there's been nothing new since then. Yeah they made it bigger, they made it smaller, they added some new processors and so on but that's their last product," he said.

Apple is being "left behind" because its model of releasing "massive products every five or 10 years" is not working anymore, Wadhwa stated.

The Apple Watch was launched in 2015 but has not produced significant gain in sales growth for the tech giant.

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Wadhwa's comments come ahead of Apple's 2016 third quarter earnings report to be released after today's market close.

Wall Street is expecting Apple to report third quarter earnings of $1.38 per share on revenue of $42.1 billion, compared year over year to earnings of $1.85 per share on $49.6 billion in revenue.

Shares of Apple are down 0.01% to $97.33 this afternoon.

Separately, TheStreet Ratings rated Apple as a "buy" with a score of B.

The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. TheStreet Ratings feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: AAPL

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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