I'm assuming nothing, AMD X86 lines are not compliant for mobile usage. In the future? May be, may be not.And why are you assuming that AMD isn't capable of delivering an ultra-mobile SoC?
Wrt to ARM CPU is is unclear what AMD plans are but my understanding of their strategy is that they aim at low end servers more than mobile parts they seem unwilling to compete with Qualcomm, Samsung, etc. or even Nvidia. I guess the point is that overall their strategy going forward is quite nebulous be it ARM or X86, actually even their GPU roadmap does not give much visibility.
Why focus on AMD? That is pretty much binding oneself to a manufacturer as Intel is likely to remain too expensive. If X86 is out there are other valid options.
Anyway I don't think their main issue is with hardware, their hardware decisions may have been subpart but it is not the harder part to fix.
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