Why Intel Processors are expensive than AMD Processors?  Example:
There is big difference in price between Intel P-IV and AMD Athlon.

no idea why they are more expensive because amd athlon are much better
than petium ones!!!

Intel has a huge chunk of CPU market share compared to other companies
(AMD, VIA, Transmeta, IBM).  Intel knows this and can, and do, charge
a premium price.  AMD (and other CPU companies) produce comparable, 
or better, CPUs than Intel, but the only way they can compete with
Intel is to sell the CPUs at a lower price.

This is a very simple question... The facts is that Intel likes to do
thing right, they spend millions of dollars testing there processors
and trying to make them best that they can be for the right price. AMD
is a great company dont get my wrong, I happen to be A+ certified and
I dont think that they spend as much time mastering the art of
processors as much as intel does. They dont have as much money 
backing them. Also AMD is kinda  like the poor mans processors, they
developed a way to make processors cheap for the public and trying to
get the same quality as you would with an intel processor (great
inovators). They kinda cut corner and dont add as many pipelines as
much as intel does which damages the overall speed but yet they manage
to some how keep up with Intel Processors. If you are worried about
what type of processor to pick you have to ask your self... How much
am I willing to spend? If it was me I would say, If I had the cash Go
for an Intel P4, My personal experience is they have rock solid
performance. But, I've also made my sister a AMD Athlon XP computer
and it gives my pc a run for its money... In the end it really doesnt
matter which one you go for. It all boils down to $.

Hope that helps.. The details that others will throw at you a very
meaning less and unless your doing a report on your question wouldnt
worry about them. You wont notice a diffrence if the intel has more
pipelines than an AMD or if the cache is larger on a Intel vs AMD.

Hi maheshvengurlekar-ga,

I won't post this as an official answer because I'm sure there are
many valid theories as to why Intel are traditionally more expensive
than Athlon for similar spec products, and mine is just one.

However, I would humbly suggest that Intel were around first, that
they have long been established and that they have long been regarded
as The Standard. AMD have built their operations up to the point where
they are a valid and viable competitor, but they are not The Standard
in the slightest.

AMD, as The Competitor, have a need to persuade potential customers
that they are a better buy than Intel, and a lower price is always a
great persuader. Intel, as The Standard, don't have to persuade anyone
of anything. They have a substantial customer base purely by being The
Standard.

It seems that commenters here have already started staking claims as
to who's best. In truth, while comparing Intel with AMD isn't quite
comparing apples with oranges, the two companies do offer different
products and each are better for certain tasks. Personally, I've never
found reason to regret running an Intel shop, but there are hardware
geeks that I know that swear by AMD. Different purposes, different
products.

Easy: Supply and Demand.

Intel knows that they're more popular.. so they charge more.

there seems to be a nice consensus that Intel is simply exploiting it's monopoly.
I'd be inclinded to agree, however Intel processors are supposed to
have the extra small features that make things that little bit faster:

generally higher Front-Side-Bus (FSB) speeds these days
more on-chip cache than their AMD counterparts. celrons have lower
levels of cache, and generally cost around the same as an AMD
equivalent.

Primary reasons behind it are the manufacturing and marketing - not
the quality. Anyone that says one company tests their cpus better then
the other is nothing more then a fanboy.

Now, the reasons:

1) Manufacturing plant locations. To give an illustration Intel has
one of its primary manufacturing plants in USA (in California if I
recall correctly). Primary AMD plant is in Germany. Of course both
have some production facilities in asia, but Intel typically has their
plants in areas with a more expensive labor force.
2) Marketing. AMD primarily targets those knowledgeable about
computers with it's products. And they're lured primarily by the fact
that AMD offers quite on par performance (and ocasionally better) with
only a fraction of a cost. If AMD were to price their products like
Intel does then they woudl loose a large portion of their already
small (relatively) market share.

Hope this helps :).