AS5040 rotary encoder and quadrature output

Reading through the AS5040 datasheet (http://www.ams.com/eng/content/view/download/1240), at page 28 (High Speed Operation - Incremental mode) says that "... Therefore, the AS5040 has a built-in interpolator, which ensures that there are no missing pulses at the incremental outputs for rotational speeds of up to 30,000 rpm, even at the highest resolution of 10 bits (512 pulses per revolution)". I'm a newbie in electronics so I only try to understand as I can. It seem that the 1024 samples/turn is only achieved in Absolute Output Mode (as stated in the following table of the datasheet) but not in Incremental (Quadrature A-B). Can anyone confirm this newbie assumption?
Thanks