Intel has the same problem that AMD has had, they get their pricing dictated to them by their competitor.
I don't completely agree with this. AMD can only supply 10 million processors a quarter at best without getting IBM to manufacture some parts for them. I think we will find AMD definitely securing higher ASPs and marketshare this year which could send the stock skyrocketing, but Intel will still be able to maintain a good mix because AMD can't supply everyone, and there is still a strong Intel brand that will prop them up. The good news is I don't see Intel being able to wage a price war, and I would hope AMD is not so stupid as to underprice their products in the face of lowered competition.
It looks good for AMD, but still not terrible for Intel. Intel will likely work things out before it becomes terrible. Intel can simply concede a little marketshare and still be profitable as long as they maintain ASPs. I still believe Prescott will be close enough to the highest performing A64 throughout the year that this will be possible.