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AMD seems to be in trouble ...

Exactly. When your opponent releases a new product and regains market share, that market share is coming from somewhere. I'd not worry about them yet, AMD have a lot of new stuff on the way. It'll be an interesting year.
 
Market share isn't the only point. Even if AMD sold more chips in the last quarter than the previous year, the ~50% price drop that the Conroe launch/pricing forced on them would take a big bite out of their earning.
 
Yeah, dropping the price in half on your mainstream lineup probably hurts the bottom line, I imagine. Especially if you are supply constrained and cannot ship a massively larger quantity of product.
 
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