Somewhere, the collective whos who of the silicon chip world is shitting their pants. Apple just showed to the world how powerful and efficient processors can be. All that with good design. Customers are going to demand more from Intel and the likes. Just imagine Apple releasing the Mx chips for server infrastructure. Intel ought to be sweating bullets now. edit: a word.
I think you are exactly right, but we should celebrate that! This kind of competitive pressure will inspire a response from Intel and other firms. The result I would predict and hope for in a few years would be better chips from everyone in the market.
Intel has certainly dominated consumer computer sales over the past decade, and until 4 years ago they were largely still selling the best chips for most consumer use cases (outside of mobile.) Intel had several missteps, but I don't think their dominant position was the only source of their problems, or simply that they thought they didn't have to try. They legitimately had some bad decisions and engineering problems. While the management is now changing, and that might get their engineering ducks in a row, the replacement of Intel with Apple Silicon in Apple's products is not likely to be some kind of "waking up" moment for Intel, in my opinion. Either they'll figure out their problems and somehow get back on an even keel with other chip designers and fabrication, or they won't.
Meanwhile other competitors in x86 and ARM have also have a short-term history of success and failure, again regardless of what Apple is doing. And the timelines for these plans of execution are often measured in the scale of two to three years, and I'm not seeing how Apple successfully designing CPUs would change these roadmaps for competitors.
For everyone involved, particularly those utilizing TSMC, there are benefits over time as processes improve and enable increases in performance and efficiency due to process rather than design, and the increased density will benefit any chip designers that can afford to get on newer processes.
I guess if I'd attempt to summarize, it's not clear who is motivated and able to compete against Apple in ARM design. In other words, is there a clear ARM market outside of iOS/macOS and outside of Android (where chip designers already compete)? And in the Linux/Windows consumer computing space, there's going to be a divide. Those that can accept a transition to macOS and value the incredible efficiency of Apple Silicon will do so. Those that continue buying within their previous ecosystems will continuing comparing the options they have (Intel/AMD), where currently chips are getting better. AMD has been executing very well over four years now, and Intel's latest chips are bringing solid gains in IPC and integrated GPU performance, though they still have process issues to overcome if they wish to catch back up in efficiency, and they may also need to resolve process issues to regain a foothold in HEDT. But even there, where AMD seems pretty clearly superior on most metrics, the shift in market share is slow, and momentum plus capacity give Intel a lot of runway.
The only other consideration is for Windows to transition to ARM, but there's still a bit of a chicken and egg problem there. Will an ARM chip come out with Apple Silicon like performance, despite poor x86 emulation software in Windows when run on ARM? Or will Microsoft create a Rosetta-like translation software that eases the transition? I'm not clear on what will drive either of those to happen.