Intel also has connections with the major companies that purchase its products, such as Apple (NASDAQ: AAPL). For years, Apple bought processors from Intel for its computers, and if the company will switch sides, ARM could lose a large portion of its revenue base.
ARM's advantages in pricing and power efficiency could dissipate as Intel introduces next generation chips.
Intel continues to lose market share in the processors markets, it suffers from the economic slowdown in the leading economies, and it is losing costumers that trade laptops for tablets. Despite all these short term negative factors, Intel is still much bigger and has a lot more resources to allocate towards producing microprocessors than ARM has. Intel also has the connections to enter this market; therefore, it could be just a matter of time before the company starts taking market share from ARM. This process could lead to a price war, and if that happens, the company left standing is the one with the deeper pockets.