What I think is that while AMD will catch up in the market AMD deems most important, the high end desktop market(only because desktops are significant portion of AMD's sales), they won't do it elsewhere.
AMD's volume and revenue are almost evenly split between desktop and laptops. But for Intel, laptops take 65%, and its increasing.
For Intel, it is very worth it to focus on more mobile products like Ultrabooks, Tablets, and Smartphones. So it might end up looking like they are becoming less competitive in the traditional desktop market, when it is actually because they are changing their focus(and money) to elsewhere. Naturally because resources are limited even for a company like Intel, focusing on one area means doing less so on others.
The ONLY market where it deems Intel's newfound focus like power consumption, performance/watt, powerful iGPUs not important is the traditional desktop market.
Everywhere else sees it as important.