It did. Even Otellini said so:

http://www.theatlantic.com/technology/archive/2013/05/paul-o...

And I'm not so sure they'll be able to go into ARM fabbing that easily. Margins of X86 are high, but they are selling less of them, so expanding to new market would have been a wise move.

To their credit, they tried twice and couldn't make it work. Not sure if things could have been different considering ARM is a licensable architecture other people can use.