Intel Corp (INTC)

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Re: But this is where you go off the deep end. The $600 buyer (and there are not many of those) will still get a high end product in his price range, whether it is from AMD or Intel. Intel may win some of these buyers if Intel products are superior.

You're saying essentially the same thing. That a $600 buyer won't be giving $600 to AMD. If AMD's 5000+ is $300, they may spend half as much on a different AMD product, or they might give their money to Intel to buy an E6700. Either way, AMD's revenue gets a cut, and a rather large one.