I'd assumed he was asking about "immediately on arrival", not "within a few a generations", but I agree with your assessment.
Longer term though.. is it practically/economically feasible to build and run a chip fab capable of building modern ARM CPUs for the needs of 10,000 people? What about the rest of the manufacturing chain for these sorts of devices? Or is the only reason we can buy a smartphone today for a few hundred dollars because of the economies of scale of building tens of millions of them on a 2 year replacement cycle?