They are taking on more and more hardware business. This is a much less profitable venture than they had before, so I don't expect things to be as rosy as you seem to. It is very hard to maintain the profit margins that they are accustomed to. Wall Street has given them a huge boost over the last year, but remember that comes after 10 years of no movement, and they still aren't anywhere near their highs during the dot-com bubble.
Still, the layoffs show that they are serious and PC sales have finally stabilized. While I am not a stockholder, I think you are right to be bullish in the short term.