I said this here a while ago. Intel had only 2 options, and they are both bad for them:

1) keep going up market, and be disrupted in the most classical way possible

2) compete with ARM on price, which is unsustainable for a company like Intel

Not only is Intel used to high margins on its chips, but it's also a very small player in the mobile world, and the PC world is shrinking continuously, so "making it up" in the PC market won't cut it.

Also, if they're promoting "$300 Haswell notebooks", virtually nobody will buy $700-$1000 notebooks in the future, and Intel will never be able to raise prices, and their profits, again.

Whether Intel will die like Blackberry and Nokia (yes, I consider the acquisition as dying, since it was a move out of bankruptcy desperation) or will survive as a tiny shadow of what they used to be, I'm unsure.

I suppose it's possible for them to survive as a company that is 1/10 of what they used to be, if they really compete on price, and make radical changes within the company (end all unprofitable/low volume divisions and fire execs or engineers that are too expensive). But that really depends on how willing they are to make those hard decisions.