The Nasdaq-100 PowerShares QQQ (NasdaqGM: QQQ) and tech ETFs opened higher Wednesday following better-than-expected quarterly earnings from Apple (NasdaqGS: AAPL) and strong iPhone sales.

Apple shares were up nearly 5% in early trading Wednesday, while QQQ rose about 1%. AAPL represents almost 12% of the Nasdaq-100 fund, while iShares US Technology ETF (NYSEArca: IYW) has nearly 16% in the stock. IYW was higher by 1.4%.

“To us, Apple’s third-quarter earnings report is encouraging, as solid fiscal results and the disclosure of a whopping $16 billion in stock buybacks more than offset a modestly disappointing September-quarter forecast,” said Morningstar analyst Brian Colello in a note. [Investors Shares Rally with Nasdaq-100 ETF]

Apples shipments of iPhone units rose 20% from the year-ago quarter and topped Wall Street estimates, while iPad unit sales fell 14%. [Nasdaq, Tech ETFs in the Groove]

“Although many were concerned that premium smartphone growth has stagnated, we think Apple’s results are in line with our long-term thesis that the high-end of the market isn’t dead just yet,” Colello said. “We think that Apple’s enormous $16 billion stock buyback this quarter was a good use of capital, as we continue to believe that the company’s stock is undervalued.”