Hi Denny,
A few thoughts on your post...
now you need to show me some ARM server benchmarks:-) ...
Sorry, I can't, I don't follow the industry that closely anymore.
The reason for the smiley is that there really are not any ARM servers.

That's what Intel did in the PC business when Wintel had an 80% market share.
I see this as a bit different.
Apple builds the iPhone at Foxconn, for about $200. They sell this phone to AT&T for $500 or so, pocketing the profit. AT&T turns around and sells it to their customers for $200, and makes up the $300 on the service contract. Intel is giving AT&T the option to buy a phone directly from Foxconn for $200.

Of course, there is a market for Intel's product, the carriers whose interest is not providing the best phone experience but grabbing market share with cheap phones possibly as a loss leader.
You are making some assumptions here about phone quality that I am not sure are valid.

Carriers will go with Intel. Smartphone makers will go with in-house design.
I am not really sure what this even means.
Alan