The S4 is a direct competitor to the 335i, and the S4 is BETTER performance wise all across the board. You need to do more research about what market segments each car is meant to compete against because the RS4 is a competitor to the M3.

 

Have you seen the price differences? Elaborate how they are in the same market?

V8 - 414 HP
V6- 330

Just introduced the sedan version for this body style
Always Sedan

RWD
AWD

+15k price difference.

 

Wow, the S4 is better than the 335i but wait! The 335i came out 3 years earlier (in the car industry that's close to a generation!). It's about time Audi caught up!

Test drove the regular A4, it was so comfortable and with such little driver involvement that it felt like a Lexus. It disgusted me. I liked the B7 it was fun to drive. I certainly hope the new S4 is much better.

I personally like both brands but I find the B8 simply too big. Now bring me an RS3 or something like that!!! These days I find myself looking at the smaller cars.

 

Listen I'm not here to start a war, but heres some food for thought.

Fastest Posted Professional Times For Both Cars

Autozeitung Test Track Times
B6 (2004 S4)- 1:46.2
335 (2006 Coupe)- 1:45.8
B8 S4 (Current)- 1:41.8

Hockenheim Short
B6 S4- 1:18.1
335 COUPE- 1:17.8
335 (DKG) COUPE- 1:17.9
B8 S4- 1:16.7

I understand there is certain advantages/disadvantages towards every driver, but the difference between the B6 S4, and the 335 are very minimal, while the B8 completely blows their doors off. Not trying to start a war bare in mind. Also the above times are for the 335 COUPE, not and AWD sedan.

 

the audi is quite a bit more expensive than a 335i as well...which may not define the marketplace much, but to me the s4 slots in between the 335i and m3, and performs as such.

 

Really? Base price of a 335 XI sedan is 42,300 while the 335i coupe is 42,200.

The S4 starts at 45,900.

If you put them both fully loaded w/ a 6 speed minus the adaptive cruise control the 335 XI coupe is more expensive. I'm sure this will apply to the two stated above as well, and if not they will be just about even.
http://www.bmwusa.com/standard/conte...1Y2sAm2sU7qoY=
http://configurator.audi.com/acc/aoa-aoa-aoa-eng.view

You also need to consider the next generation 3 series will most likely have an increase in base price, and more than likely beat the current S4 in stock forms.