Apple (AAPL) iPad Pricing Takes Aim at Samsung's TabPRO Line - Analyst Comments

Apple (Nasdaq: AAPL) announced Tuesday its iPad with Retina display will replace iPad 2. Prices start at $399 for the 16GB Wi-Fi model and $529 for the Wi-Fi + Cellular model. In the view of Wells Fargo analyst Maynard Um, Apple's competitive pricing takes aim at Samsung.

"We note that the revised pricing strategy brings the entry level iPads in line with the entry level iPad mini. The price reduction comes at a time where Samsung is launching a new Galaxy TabPRO line priced at $499 (Model 10.1/16GB/Wi-Fi) and positions AAPL to be more competitive in regards to pricing," said Um.

"We maintain our Market Perform rating on (1) gross margin concern into the iPhone 6 launch, (2) limited market cap opportunities in the markets it plays in (including TV and watch) and (3) signs of the balance of power shifting back to operators from handset vendors," he added.

Wells Fargo has a Market Perform rating on Apple (NASDAQ: AAPL) with a price target of $505-$575.

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 $526.74 yesterday.

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