So in your scenario, Intel stops making desktop, laptop and server chips completely. Doesnt replace them with ARM, but throws those businesses away and only gets any revenue from the existing mobile ARM market.
I dont think that's actualy what anyone is suggesting.
But it is. Intel runs its fab lines as near to full capacity as they can. Consequently, every ARM you make means you make fewer x86's.
So, you're telling me that a fab line manager is going to reduce his profit margin by 10% just so he has a fallback when the x86 market collapse and decimates Intel?
This is like finance guys before the stock market crash: "I can be contrarian but it does me no good. If I'm right, my company is so invested in the stock market going up that my company is dead anyway. If I'm wrong, well, I look like an idiot and don't make money. So, I'll just try to make money and cash out."
I dont think that's actualy what anyone is suggesting.