It was 32bit only, and a lower clockspeed than the p4 - so it would have been a tough sell to the less tech-savy consumer.
Not to mention they had already spent a load of money on the p4 designs. It's not as if they could justify just writing that off - they cancelled Tejas when it become apparent that they needed a change of philosophy, and had the stopgap dual die processors to tide them over when they developed a proper desktop design (core 2).
Also it's worth considering they could sell laptop chips at a higher margin than desktop chips of similar spec.
Made more sense to recoup the development costs by actually selling the p4, which was a commercial if not critical success.
Also, it's worth going back now and testing a HT enabled p4 against an a64 - now that code is better threaded the p4 doesn't compare too badly.




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