Sounds like BK strategy is to become a foundry partner for Apple at any cost, even undermining x86 arch if necessary.
Consider the facts:
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Intel signs deal with ARM to fab ARM IP.
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Apple's ARM-based Cortex SoCs are reaching performance parity with Intel's CPU offerings.
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Intel gets into iPhone7 with cellular modem and trying to use it as a "beachhead" to make additional inroads into Apple's mobile product lines.
Apple is definitely trying to replace x86 from their laptops to reduce dependency on Intel's unteliable and underperforming product deliveries. I have no doubt this will happen eventually, perhaps as early as next year. BK knows this, and in my opinion, is desperately trying to salvage any sort of business with Apple. So what to try? Of course! Let's fab their Cortex chips. Problem is, to put it nicely, Intel hasn't exactly created a reputation of being a reliable, customer-oriented foundry partner. To add insult to injury, TSMC and Samsung are reaching process technology parity and may even surpass Intel in the next 1-2 years, driven by their own virtuous cycle.
As you can tell, Intel's current position is precarious as fck, and this strategy may even backfire further if the foundry deals for ARM (for example, LG) don't work out. Furthermore, by de-prioritizing investment in x86 innovation, intel is risking the leadership in servers, where the competition is already looming.
Dark, dark times ahead for Intel.