We should also consider that MS and Intel are giants compared to most traditional PC makers, they have far more cash available and MS also hugely greater profit margin, so in the past they could grab them by the throat, also helped by the slow US antitrust, that still stuck to the past, when IBM was the market leader, paralysed the only company powerful enough in the '90s and the 2000s to compete with the new SW-HW duopoly, that instead was repeatedly allowed to break every rule about fair play against smaller competitors being at most fined by laughably low sums. But now, trying to merge PC with smartphones and tablets, MS made a terrible mistake, as it finds itself facing new HW partners that enjoy far larger revenues and profit margins than old PC makers, and that have been used to install different OS on their current best-selling devices for years, so they didn't allow MS to build its legacy power on their market, and that don't need to concede Intel the exclusivity to receive some marketing help, nor they have to give it to MS on OS to obtain a better price on it.
Long story short: in the very moment the line between PC and other devices will be completely erased, MS and Intel will lose their power on the market, MS will lose also most of the power of its SW legacy, and they will be forced to compete exclusively on price and quality. Still with the big help of the brute force granted them by their size and cash, so they won't disappear and they'll remain two of the biggest players in the market, but they won't be anymore two giants amogst dwarfs.

We should also consider that MS and Intel are giants compared to most traditional PC makers, they have far more cash available and MS also hugely greater profit margin, so in the past they could grab them by the throat, also helped by the slow US antitrust, that still stuck to the past, when IBM was the market leader, paralysed the only company powerful enough in the '90s and the 2000s to compete with the new SW-HW duopoly, that instead was repeatedly allowed to break every rule about fair play against smaller competitors being at most fined by laughably low sums. But now, trying to merge PC with smartphones and tablets, MS made a terrible mistake, as it finds itself facing new HW partners that enjoy far larger revenues and profit margins than old PC makers, and that have been used to install different OS on their current best-selling devices for years, so they didn't allow MS to build its legacy power on their market, and that don't need to concede Intel the exclusivity to receive some marketing help, nor they have to give it to MS on OS to obtain a better price on it.
Long story short: in the very moment the line between PC and other devices will be completely erased, MS and Intel will lose their power on the market, MS will lose also most of the power of its SW legacy, and they will be forced to compete exclusively on price and quality. Still with the big help of the brute force granted them by their size and cash, so they won't disappear and they'll remain two of the biggest players in the market, but they won't be anymore two giants amogst dwarfs.

I see what you are saying. I don't however see Intel losing power. Intel processors run MacOS, Linux, Unix, Windows, ChromeOS.. pretty much any damn thing.

Intel is also a big promoter of linux and open-source. They don't care what the OS is as long as in runs on their chips and they contiunue to profit.

The following extract is taken from their website:

For over two decades, Intel’s contributions to open-source projects—from one end of the solution stack to the other—have helped ensure that a breadth of solutions run exceptionally well on Intel® architecture. Through global collaboration, we’ve helped to build a vibrant ecosystem where everyone can prosper. And there’s plenty more to come.

Intel is positioning itself for whatever future there is too come. Funny thing on their website is that there are two languages to choose from. English or S.Chinese.