You only have to look at the situation now; as far as I've been able to find out, Mullins seems to be better in pretty much every way vs Bay Trail T, and yet where are the Mullins tablets? It outperforms Atom on the CPU side and absolutely beasts it in GPU performance. The only thing I've seen less about is power consumption, but it seems extremely unlikely power is so monstrously high OEMs would turn it down. A lot of the Tegra line have been criticised as power hungry but have still found a few design wins.
I think the perception is that Intel = faster than ARM in a lot of peoples' minds, but it really couldn't be further from the truth any more. On the GPU side, anything remotely mid-range will beat it, and the CPU performance is simply average. Any recent A15 implementation or Krait 400 will have it beat.
http://anandtech.com/show/8760/hp-stream-7-review/3But OFC, it's hard to argue with free. What seems to have happened though, somewhat ironically, is that Atom has made it into a load of bargain-basement tablets you wouldn't otherwise touch with a bargepole, and people are buying them on the premise of the Intel brand. I wonder if that has a chance of altering brand perception? I mean, it's hard to make the argument of being a ‘premium’ brand when you're having to literally give away your chips for free, and having them mostly end up in a load of generic tablets and Android sticks. :P
However, it's obvious stock dumping isn't a sustainable business model, so I wonder if the x86 niche Intel may carve out in the tablet market, and the associated app support etc, will open the door to a smoother entry from other x86 competitors? Or maybe AMD are betting more on their ARM chips for mobile devices? I suppose the Skybridge diversity makes sense when you think of it like that - they're good either way.