Intel should plug the entire lower-end with its own SoCs for IoT/embedded, in-vehicle, low-end and high-end smartphones, tablets, etc. and provide cut-throat competition to each of the ARM vendors.
Marketing case studies have demonstrated for decades that you don't allow competition to enter any part of the market (typically, they enter the low-end). Toyota and Honda (and other manufacturers) have repeatedly demonstrated how new manufacturers can enter the low-end of the chain and creep up with higher-end and luxury products....and destroy or vastly diminish the incumbents.
It is high time Intel started shipping something that would be competitive to ARM at each level of the SoC/CPU chain.
And it doesn't matter if the lower-end products do not provide the same level of margins as the higher end SoCs/CPUs. This should be done purely for strategic, corporate, and brand perception...and there is considerable value in all that.