Just goes to show that Intel has to give away their low power line to get it used. There competition there is really ARM, not so much AMD. Intel is trying to charge between $20 and $70 for one of their low power CPUs (Atom line), when they aren't bundling it with a high margin Haswell or Skylake CPU that has that much in profit to cover. ARM, on the other hand, you can get starting well under $1, and even at the higher end your looking in the $5 range. For a device that's currently being sold with an extremely tight margin, that's a huge price difference for not-that-much difference in performance.
They can easily get around "dumping" laws. Sure, maybe you can't give away the second product, but you could enter into an arrangement where it's at a seriously reduced price, such that the sum total is the same as it would be if it were free... It's all just numbers on a spreadsheet, they will just finagle them until it meets the law.
It's going to take an awfully low end cell phone SoC for the design, licensing, fabrication, binning, and packaging costs to all total something inside of $5. For higher end parts, the licensing cost of just the ARM cores and a GPU can be more than that. The per-chip costs of getting a fab to create wafers on a cutting-edge process node can also easily be more than $5.
Decently nice cell phone SoCs can be had for a price in the low tens of dollars each. But not $5.
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Decently nice cell phone SoCs can be had for a price in the low tens of dollars each. But not $5.