AMD has been knocking Intel's socks off for the past several years in the chip biz by producing superior products with better performance at cheaper prices. This has caused AMD to deliver more product to more customers and form firmer relationships as Intel stumbled around deciding how to respond. AMD even recently agreed to acquire graphics chipmaker ATI in a deal worth $5.4 billion so that it could expand its portfolio of chip products from CPUs to graphics chips -- an important marriage of technologies that scales rather nicely into more sales and more integrated products for customers -- which they all want.

Intel, though, has been preparing a worthy comeback to the AMD onslaught with its partnership with Apple (which gave it much-needed PR more than anything) and with the recent release of the Core Duo and just-released Core 2 Duo chips. These new flagship products are beating equivalent AMD products and are slowly putting Intel back into the driver's seat on the performance and cost aspect of desktop computer processors, among other things.

But, what if Intel stumbles yet again and cannot supply the needed Core 2 Duo product volume that customers request? Intel has had this problem before -- as has AMD -- but Intel cannot afford it this time. The production launch of the Core 2 Duo must be solid. By some indications, it is not turning out that way, at least yet. The Core 2 Duo products look to be beating just about any competing product, but the short supply (in retail) is causing minor price gouging from many sellers, due to the fact that the Core 2 Duo is selling for above list price in many places -- a sure sign of supply/demand inequity. Intel better respond fast and get its supply machine in order.

Brian White has worked in various executive positions in technology and telecommunications and now focuses on editing and writing.