This implies that there will be screens of differing technologies floating around. Really surprised Apple couldn't get this issue resolved earlier in the development cycle it's clear there's huge demand for these, and hi-res 7" tablets have been on the market for a while now. You'd think Apple would have seen this coming. Now they're going to miss out on a LOT of holiday sales.
It is a little surprising. Perhaps they got caught off guard a bit by how quickly Google and Amazon got their high-res screens to market. On the other hand, Apple's screen is 43% larger than those of the Nexus 7 and Kindle Fire HDX, with a similar PPI, so naturally yields would be lower even if the technology is exactly the same.