I thought this was one of the most interesting points. He does seem to imply they're saving a lot of money and he has been eyeing some other giant company. I doubt it's Microsoft, but it looks like one day they will try to buy up someone big.
Apple's projections are notoriously low. Like unbelievably low. Many people have asked them why they even bother. Their response has always been "we give a number we feel comfortable we can meet". And of course they blow it out.
The current resolution of the ipad isn't spectacular. It is completely possible that the 7" tablet can have the same resolution but just higher ppi. Even at that, I don't think it will make it a retina display.
Where's the link to the AI article about issues with Apple's stock moving to $400? It was a good read to illustrate the challenges they face to get to that price.
EDIT: Found them: