While Intel has had substantial losses in the Mobile group, Mobile and IOTs are a must do for Intel. One the main reasons to supply 40+M tablets is to build the distribution chain and to target lower cost producers in China. At the higher end, the new tablet processors are power/performance competitive with Apple/QCOM, especially with the die shrink to 14nm and introduction of 3D transistors into the lower end processors.
Their main weakness has been the RF integration into a SOC, which is QCOMs main strength. However, Intel has been investing heavily into this area and QCOM is not as strong on 4G and later than at 3G.
To me, the argument about ARM vs Intel/x86 is reminiscent of the RISC vs CISC debate decades ago (or various AMD vs Intel iterations). Won’t play out the exact same way, of course, and it will take a number of years. However, what Intel is doing is similar – They are investing in improved design, utilizing their production advantage (technology and production capability), and maximizing their financial advantage.
As someone told me many years ago, Intel has excellent technology/designs, but the true advantage is their production processes, technology, and capacity. They might not be able to out-design you all the time, but they can out-produce you.
Disclosure: I have a long position on Intel stock.