You people do know how the supply-demand laws work, right?
In the end it will boil down to whoever can produce the best performing hardware, for the lowest price, in other words the price : performance ratio. For example, if CPU A costs $500 and then CPU B costs $1000 but only performs 10% faster than CPU A, which CPU will be more popular to the crowd? Obviously CPU A. Look at the 7800GT vs 7800GTX and 7900GT vs 7900GTX for example ... people want the best bang for buck, not the best performance (but if you can get that too, it's certainly awesome!).
So in conclusion, if there are Conroe shortages, which I wouldn't be suprised if there were, seeing as every enthusiast wants to get their hands on one, and Intel hopes to have at least 1/3 of the prebuilt PC sales consist of Core 2 CPU's before the end of the year, Intel will be hurt. AMD has already chipped away the prices of it's CPUs now ... and we aren't even into July yet.
AMD doesn't have to top Intel for now, because that would be very, very difficult. They merely need Intel at bay and hold out long enough for their new architecture.
Intel can produce many more CPUs than AMD, however Intel also holds a larger responsibility at supplying to many brands and corporations. Dell for example, and now Apple. When Yonah was released, there was a huge shortage of Yonah chips, and Intel had to choose who to "give" them too, they chose Apple. There are many more desktops than laptops, and the demand for Conroe is certainly higher than Yonah, so hopefully Intel has planned for that.