2011 probably had them a bit concerned. The first wave of true iPad rivals all failed, miserably. It wasn't the processor that people wanted, it was the iPad itself. And sales for iPad cooled down by the third quarter. -----
From the consumer point of view it has never been about the processor. The ARM CPU (and the IP business model) was (and is) simply an enabler of form factor. It enables devices such as the iPad and the smart phone. The resulting SoC is cheap to produce, reduces the BOM which makes the device cheaper and smaller. All this reduces the power draw which means a smaller/cheaper battery etc.