I am sure you are right that ARM is in graphics for the long haul and I also believe it will win market share from Imagination -- but how much and how quickly?
The point I was trying to make was that Imagination WAS the incumbent with STMicroelectronics and ST-Ericsson, got displaced by ARM Mali in the U8500 but has now regained a key position.
If ARM is going to gain market share in graphics it needs to win customers AND hold on to them.
Is this an overstatement of the situation? ARM is getting into the graphics business, and Imagination is the installed champ, so doesn't make sense that Imagination will win few?
Arm needs integrated high end graphics to compete with Intel's Atom chips, so it will be there for the long haul.