It doesn't matter that there aren't a lot of consumers in the market for this because the few that are will spend a lot of money which gives Intel good margins. Apple sells under 10% of the worlds PCs and only around 15% of the world's smartphones, yet they make more profit than everyone else because they sell to the part of the market where the margins are the highest.
Intel has a lot of clout in the marketplace. They have been reliably supplying huge quantities of cpu's and other computer related parts to manufacturers for decades. For large vendors plus or minus 10% performance doesn't make a difference with computers being as fast as they are these days. Intel has been coasting (struggling with 10nm) for a few years now.
On the other hand people are noticing the architectural and process lead that AMD has gained on them. Right now it's the techies, but if Intel doesn't respond that will diffuse downward to the average user. It might take a year or two but if Intel doesn't catch up it will happen.
It's a race.
AMD must increase supplies of Zen 3 and produce mobile parts in quantities that matter to the big vendors before Intel can close the gap they have created with Zen. This is tough because no one wants to order 10,000 systems that can't be reliably delivered and put their ass on the line.
On the other hand Intel must take it's billions of dollars of cash and stop living in the past. Their current architecture is beaten and their process tech is far behind from an efficiency point of view.
It's a fantastic example of the free market and capitalism at work and the consumers are the ones who benefit.