iPad Production Problems Have 'Significantly Improved'

Sterne Agee analyst Shaw Wu says production problems with the iPad 2 have significantly improved and is upping his target for AAPL to $460, according to FORTUNE.

Highlights From Wu's Report:
● iPad production problems have "significantly improved," writes Wu, "with better yields and higher output due to successful retooling and conversion of more production lines to iPad 2."
● The iPad "still has a ways" to go to hit what Wu says is Apple's goal of 3-4 million units per month by the second half of 2011, but is "getting closer."
● Demand for the iPhone 4 appears to be holding up better than expected due to the white iPhone and "continued strong adoption" at Verizon and Apple's international markets.
● "Channel feedback" on Apple's recently refreshed Intel (INTC) Sandy Bridge quad-core iMacs is "strong," leading Wu to believe Apple's desktop Mac business, which had been "a laggard," is set to rebound.