ARM is a cellphone embedded architecture that has run simple GUI and primitive cellphone applications. Because it is cheap, it is being extended to run more complex and internet applications - and falling short.
Sure, Apple is racing to convert standard internet content to "iPhone compatible content" like Flickr and youtube but it's really about converting content written for PC's and dumbing them down to run on ARM.
Can they keep up? Doubtful. While ARM moves up in performance, Intel is moving down in power. Software wins and therefore, Intel wins. It's just a matter of time before x86 fits the power envelope of an iPhone formfactor.
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