Intel chips do not cost $300 to $400, so not sure how Apple are going to make the 11" Air that much cheaper. I guess they could skimp on the ram as well, since

Intel chips do not cost $300 to $400, so not sure how Apple are going to make the 11" Air that much cheaper. I guess they could skimp on the ram as well, since the iPad does not require gigabytes. But most other parts of the machine would not change.