They were in that even before smartphones were the norm. Considering that they had to compete a lot more in the server space (SPARC comes to mind) and then won that market doesn't mean they won the smartphone market.
AFAIK, Paul Otellini also made the same argument about servers however, the point is really about processors that run inside consumer products and not server infrastructure. Intel Inside just isn't the case.
Intel didn't miss anything, they sell the hardware that powers the infrastructure behind these new, always-connected devices.