Part of the problem is that all phones/tablets are standardizing on the ARM processor. In theory Java encoded Android programs can run on any processor, but it is also possible for programmers to natively compile their code, and no one wants to buy a tablet/phone that might not run thier favorite program.
I don't know why Intel doesn't just come out with a killer ARM processor. I'm sure they already have a license. Actually I think Intel was one of the very first ARM processor manufacturers, way before Qualcomm or TI. I would think that they could come out with a killer ARM chip that would blow the competition away. Either that or just leave that market and stay with servers, desktops, and laptops.
They will combine their divisions...have a good round of layoffs ...record one time charge so operating income looks better (that one will exclude one time charges)...maybe they should sold their mobile business to Global Foundries for few billions like IBM did :-)