They kind of tried and failed. Intel is completely stuck in their "x86 is the only way" culture. x86 just can't compete in the low power space. For phones, the x86 power requirements made it effectively DOA.
Sure, Atom could have competed with arm in some markets (small laptops for example, they had some success in the early netbook days), but Intel managed to screw even that up by deprioritizing Atom development - they thought they could make more money in the server space. Short term, not a bad bet, but it wouldn't surprise me if it set Intel's eventual demise in motion. We're starting to see the signs now.