Comment 'Disposable' seems a bit strong... (Score 2) 110
Though both are hedging as you say, I think both desperately want the other to overwhelmingly succeed. MS on ARM is not competitive due to a complete lack of support for legacy x86 applications and an otherwise uninspired design, so MS wants the world to run on x86 where they have home court advantage. Similarly, while Intel still has mostly better offerings, they cannot extract the desired margins out of such a highly competitive market like ARM where people will go without the very latest semiconductor process and gobs of performance. They want a software ecosystem that demands x86, which only Microsoft really has.
So yes, each has some 'worst case' contingency intended to keep them in the market. Those contingencies are both such long shots and will forever reduce margins even if they are 'successful'. That's why Intel has double downed on engineering with MS about platform sleep states and such without giving Android nearly as much attention (basically just token attention).