I think the low wattage trend is most important in mobile, because there it directly translates into battery life. And yes, ARM is making inroads there. Intel also tends to offer more performance per watt.
For desktops that don't need huge performance, AMD has a fairly good product in its APUs. Wattage is not quite as important there. But as Intel's integrated graphics get better, AMD is coming under pressure there as well.
Now reviews of APUs vs. discrete cards and CPUs show that the APUs tend to be bottlenecked by memory bandwidth, so I wonder if AMD might do better with a PC version of the chip they built for Sony's PS4. I'm thinking of a small form factor mainboard (Mini ATX? ITX?) with soldered in APU and 8 GByte of GDDR5 RAM. Which would obviously not be upgradeable, but should be quite sufficient for the sort of PC their current APUs are typically used in. Compared to the PS4, that board would have to offer more USB and SATA connectors, plus maybe 1-2 PCIx slots for a bit of extendability.
In the gamer market, it seems that most people don't care that much about power consumption. I do, but I'm the exception among my friends. For most it is about framerates and higher framerates. AMD has a problem there with their CPUs, because Intel has a huge advantage in performance. But in the GPU market they are fine.
I hope AMD can survive on the console business for now and close the performance gap to Intel with the next version of their Bulldozer architecture. Because if they don't, they will disappear from the x86 CPU market eventually.