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How does an 8 core, 4.7 GHz AMD processor end up cheaper than a quad core, 4 GHz Intel processor.

Because the techniques are totally different and an 8 core isn't comparable in most cases to an intel quadcore. Intel is much better at single core performance than amd.

Also you shouldn't look at ghz when comparing intel against amd.





 
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Differently engineered chips. The 4 core i5 performs better than the 8 core FX chip therefore intel can put a higher price on it because people will pay for it.

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We just had this discussion guys. Seriously. Use the search.

http://linustechtips.com/main/topic/172001-whats-the-difference-between-amd-and-intel/

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