ARM is bigger than Intel, and Intel stepped into ARM's market. Like I said before, both Intel and AMD should be careful. ARM is probably the only company that is capable of taking them both on.

You're talking about a company that has billions and is almost entirely R&D, this isn't VIA and they won't bankrupt themselves. If they decide they want to beat the i7 they'll only do it if they make a market to sell it to. And so far they are making a decent inroads into creating that market.