While $AAPL's EPS has declined some since last year, the company is still quickly growing app store revenue. Additionally, the company's stock is priced at bargain levels with a P/E ratio of under 11... Which is very unusual for a powerhouse company like Apple.
Apple stock rose 7% after reporting earnings. Investors are surprised because the consensus view did not incorporate the company's success in software. This is a key point: Apple will be far less reliant on new phone sales going forward because of the huge success of its services platform, which grew 19% last quarter and resulted in record App Store revenue.