Of course I'm aware of how ARM operates. We have the sales figures from 2013 as well, and Intel is larger than the ARM partners combined. However I think that just indicates that (a) ARM processors are lower featured and hence cheaper and (b) there's real competion in the ARM processor market which is mostly absent from the x86 market.
You hit the nail in the head. Intel has built up amazing margins on the x86 business over the years by beating out competitors. ARM margins are razor thin by comparison and Intel can't bring themselves to cannibalize their cash cow by becoming another ARM manufacturer.
http://www.icinsights.com/news/bulletins/Qualcomm-And-Samsun...