The biggest concern Intel has is that moving down market, shrinking products and lowering margins almost never works in any industry when a disruptive competitor is moving upmarket into the same space (Innovator's Delimma).

If Intel could move down market successfully don't you think we would have seen a reasonable IA facsimile of an iPhone or an iPad after all these years?

Soon everyone on earth, except perhaps the bottom billion poorest, with have Internet access via ARM and Intel will peak at the top 2-3 billion. That's what scares the hell out of them.

ARM,as a mobile optimized architecture, will never compete on performance grounds with IA. IA is the push rod V8 of computing and ARM is the hybrid.