A labtop costs more than the equivalent powered desktop... The components need more qual testing fitting into a tighter space with less room for heat dissipation, including the more expensive packaging.
Take a memory chip, and an INtel processor... why can INtel charge a magnitude more for the same size piece of silicon... because it can !!!! The customers have NO choice... AMD doesn't have the capacity .
The power of the INtel monopoly is so strong, they dictate to their customers what devices INtel chips can go into. Ex) Customers can only put ATOMs in labtops with small screens, why ?? Because it protects INtel's more expensive processors that INtel puts in more desirable larger screen labtops.
"Intel can compete on the same price level as ARM for the sale of low cost processors. "
SUre, INtel standard MO is to subsidize their new market and dump below cost... more to harm the competition than to initially make $$ from it. Then pay the $1B fine after making their competitors lose far more... They make so much from other lines, that they can easily afford to do so. Just google all the lawsuits thru the years from INtel bundling...
"HUGE Intel profits."
Yes, a monopoly has its advantages... But next gen ARM devices, supporting Win8, will force INtel ASPs lower...