Sterne Agee's Wu Notes Three Surprises from Apple's (AAPL) iPad Mini Announcement
(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.
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Shares of Apple closed at $613.36 yesterday, with a 52 week range of $363.32-$705.07.