As Intel's Penryn 45nm generation is something that is out of AMD's reach, AMD has decided to use a new strategy. It will dramatically adjust the prices of Phenoms and it plans to position them as price / performance parts.
Phenom will certainly have a phenomenal price as clock-to-clock and performance-wise it doesn’t look so bad compared to Intel. Another advantage that AMD has on its side is that AMD has 2.2, 2.3 and soon 2.4GHz and faster quad core chips, while Intel will only have 2.4 and 2.5GHz or faster, and this at a higher price.
AMD needs to get through 2008, but 2007 was certainly the worst year in the company's history.