That's the consequence of resting on your laurels and getting complacent. They relied too much on being the large incumbent, and they reap what they sow.
They reaped billions in profits. The issue is that organizations can't turn it on and off based on competition, once you are rich and lazy, the organization fills up with coasters and before they know it they no longer have a higher gear. Remains to be seen if Intel can come back, but I doubt it under their current leadership.
