Nordic Hardware interviewed Intel's Pat Bliemer and he reveals AMD is a competitor on price at least.
Ever since Intel gave up on the Netburst architecture and instead transition to Conroe - Core 2 the company has been on a hot streak. AMD has tried to fight back with performance/price products, but Llano became the product it was searching for and needed for so long. The circuit has relatively good energy consumption and class leading graphics circuit when compared to other integrated circuits. Llano did not bring any real news in the processor department, but was sufficient to make the manufacturers flock around the new platform. Our question to Pat Bliemer was if it sees AMD gaining in any segment thanks to Llano, and in the lower segment he did see that more products was powered by Llano, but also Brazos, but all is just a matter of price. He doesn't think AMD is very pleased with the situation it is in.