Apple's quarterly results were a sigh of relief for investors, said Gene Munster, founder of Loup Ventures on CNBC's "Fast Money."

"You can rest easy knowing that the iPhone franchise is in fact intact," he said.



Everyone was focused on the iPhone sales number, which came in at 78.29 million, well ahead of the 77.42 million analysts expected. Guidance for Q2 was slightly below expectations, but not dramatically so - the top end revenue number was $53.5 billion, vs average expectations of $53.8 billion.

"That's huge because about a year ago when the iPhone 6S came out that March guidance was a disaster," said Munster who owns shares of Apple.

Apple's stock jumped as much as 3.5% in after hours trading because Apple had good profitability and showed some stability its guidance, said Munster.

On China, there's a lot of competition in that market and Apple will have to answer hard questions about how to improve that market, said Munster.

Apple is touting its services growth, and said on the earnings call that it expects to double its services revenue within four years. In Q1, it booked $7.17 billion in services revenue. But institutional investors still largely see Apple as a phone company and are likely to discount the services sector of the business until it climbs up from 13 percent to 25 percent, Musnter said.

"It's good that the services is growing and that's the long-term strategy for better profitability and sustainability, they are not getting credit for it from a stock perspective," he said.

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