Sterne Agee's Wu Notes Three Surprises from Apple's (AAPL) iPad Mini Announcement

Sterne Agee's Shaw Wu commented on Apple (NASDAQ: AAPL) newly announced iPad mini, noting three surprises.

(1) iPad units in the Sept. quarter appear to be lower than expected confirming our supply chain work; (2) pricing for iPad mini at $329 is higher than many would have liked; and (3) surprising iPad refresh to 4th generation.

"While the focus is on iPad mini's price point, we would argue AAPL has a strong track record pricing better than most and the lower price of $329 vs. $399 will drive incremental volume," Wu said.

He is maintaining his Buy rating and price target of $840 going into tonight's Q4 report.

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $613.36 yesterday.

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