Well, remember, according to horde:
1) Kentsfield isnt a quad core because its 2 dual cores on a die
2) its all irrelevant in any case as Intel will be bankrupted by AMD soon.
The problem is that it will still take years before Intel goes bankrupt thanks to AMD. Intel currently has roughly 15 BILLION dollars in liquid assets....versus the only 4 Billion that AMD has. Intel also has a lot less liabiltiies to deal with, percentagewise, thus making more of that money free to use as Intel wishes. It would take years of loss to cut Intel down into a position that would force bankruptcy.
AMD Balance Sheet
Intel Balance Sheet
If Intel were to fear for bankruptcy, they would naturally do what they have to do to regain marketshare and restore profitability. The only way Intel would go bankrupt would be due to market pressure against Intel. Over the past couple of years, AMD has make great gains in denting the publics perception of Intel, and that AMD has good products. However, Intel is still the best in the public's eye. That being due to Intel's very highly successful marketing campaigns. Thus, Intel would regain marketshare, by reinstituting the belief that they are the best. Currently, with the Conroe core line, and the extremely competitive pricing, they have just that ability.
Based on current market conditions, Intel would just lower prices on their products, flooding the market with processors that are twice the bang for buck as any AMD processor, thus making AMD processors a desire to only those on a bargain budget, or manufacturers looking for a quick buck. AMD would have to compensate and drop their prices to match, and that would cut into AMD's profitability, very likely forcing AMD to go into the red again. AMD cannot handle the profit loss like Intel, and would have to make cuts. However, AMD can't make cuts and still keep operating at 100%, as such Intel can.
With Intel "trimming the fat" currently, by laying off all those employees, and streamlining their business, they are setting up for the future, where there is a tighter market for processors, and less profit to be made. Yet, this will also equate into higher profitability, thus giving them more of an ability to deal with AMD.
The real question then, is whether AMD can go into the red again in terms of profitability. Most people who own AMD stock, typically also own larger amounts of Intel stock, and they would rather see AMD, the smaller company, lose money, than Intel.
Even better, what is Intel's goal in the price wars that are currently going on? Is Intel attempting to weaken AMD's marketshare? Is Intel simply reorganizing to be more competitive? Is Intel looking to restore the status quo of 4 years ago, before the Athlon line came out, and AMD had less than 20% marketshare? Any of these questions can be answered yes, and yet, if any of these questions are answered, that means bad news for AMD.
Intel isn't going to be bankrupted by AMD anytime soon. In fact, it is more likely that AMD could be going bankrupt if Intel is too aggressive with their current marketing campaign.