apple inc AAPL reported better than forecast on Thursday September quarter results, and for some it was a welcome relief high profile technical disappointments.

Loup fund co-founder Gene Munster attributed the tech routine to investors placing more emphasis on “performance today” than “estimates of future growth” after some disappointing tech earnings.

In Apple, investors are buying both performance and potential, Munster said. Cupertino reported 8% revenue growth and 4% earnings growth, effectively leading revenue and earnings in the December quarter in line with expectations, he noted.

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“Consumers need Apple’s products,” the venture capitalist said, adding that its products, which were once considered luxuries, have become a necessity. This is evidenced by over a billion users continually updating their devices, he noted.

“For consumers, the decision to upgrade is less about getting the latest features and more about getting a working and reliable smartphone,” Munster said.

Though Apple didn’t discuss optionality on the earnings call, Munster said the company has growth options in three potentially addressable markets, namely healthcare, augmented reality and auto.

“One of those three occasions will likely bear fruit and build the company for another decade of solid performance,” he added.

Apple was up 7.56% on Friday before settling at $155.74 Benzinga Pro data.
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