The 64-bit transition is actually a minor one because 64-bit CPUs can still run all existing ARM code, so there is no reason to switch to a different ISA. Companies are switching on masse to 64-bit ARM. So the market has already chosen.
The fact is, JP Morgan has a point - Intel has been losing many billions per year over the last few years trying to get into mobile without any success at all. So it is not just about this quarter but about the last 24 quarters. There comes a time where they have to admit it was crazy to push x86 into a mobile. Their latest Silvermont has already been beaten on performance and power before it even made it into a phone...
Intel might make some profit in tablet market as they are a brand seen closeness to PCs but mobile its so very difficult. It will be another player in the smartphone market. There is enormous amount of competition. ALmost every company that has presence in semiconductor wants to try out smartphone.
@Rick, I agree. This is why we can't make good things. The bean counters want immediate returns. I remember when the US abandonned LCD manufacturing to the Japanese because they didn't project positive earnings for 10 years.