AMD's courts channel - inventory must be horrible!

"AMD is trying to put some spark back into its relationship with the channel in 2007 with price cuts, a more balanced global inventory and new manufacturing technologies."
Which basically means that inventory is at alarming levels and now they need the channel who got screwed last year with wasted and depreciated CPU-less AMD systems.
In the fourth quarter of 2006, AMD ran into trouble with system builders when the supply of dual core Athlons ran out. Executives said that won't happen again.
Either they're lying or they believe that their inventory buildup and status as a low-end CPU supplier is now permanent.
AMD has announced that its Athlon 64 X2 5600+ dual core processor's price has been reduced to $326, down from $505 in the first quarter of 2006. The 5200 series is $232, versus $295 a year ago. And the 4600+ series is now priced at $195, compared to $215 a year earlier. On the lower end, the Athlon 64 X2 3600+ series has been reduced to $102 from $138 a quarter earlier.
Prices for single core AMD 64 processors have also come down a bit, ranging from $78 to $93. Meanwhile, the price tag on the 3400+ Semprons is now $67, down $4 from last quarter.
Which just confirms a growing inventory and overall lack of demand for AMD processors.
And why are they having this problem?
"I think the greater problem they're having is the onslaught from Intel's new products. The Core 2 Duo is a very popular product and Intel is aggressively promoting them".

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AMD based PCs provide low margins with delivery risks. On the other hand you have Intel based PCs with entry levels on all segments (low to high margins), guaranteed on time delivery and free advertising money. Why would any businessman would want to deal with AMD?