apple is becoming a services company, selling high margin services. This seems to be what the market is missing.
A lot of Apple stock holders are speculators who have bet big on Apple continuing to grow and expand their device and service business to even larger heights, stopping or slowing won't recoup the current bets.
Also apple cutting orders from one vendor might also be an indicator of vendor diversification.
Apple Music - Only major service which requires you to install iTunes to play with all kinds of funky issues. (ex: try to play an Apple music video fullscreen on a multi-screen system and all other screens goes to BLANK, I mean seriously??) Apple Maps - Not available on non Apple devices iCloud - You only pay for this when you are heavily invested on iOS ecosystem.
Apple services works best on Apple products today; the real question is whether the price increase just forces your average consumers to buy/keep used/older products or they would switch to alternatives.