Too Late
Would this be the same Intel who failed to make a dent in the mobile market? I can't see them having much success in this even more low cost and low power market. Small, cheap, and fast to market isn't in their DNA.
The companies that are going to amount to anything in this "wearables" market (assuming it isn't just another fad) are already tinkering with designs on the test bench. Intel is going to be "too little, too late" to make a difference.
Intel's big problem is going to be the relentless downward pressure on prices in a world where the CPU is a mutl-vendor commodity. It's the same problem that Microsoft faces with operating systems and it's why neither company has had much success in the mobile market. Microsoft at least has had some success at branching out into other software segments and so perhaps has a future after going through an IBM style painful restructuring. Intel however really has only overpriced CPUs used in stagnant traditional markets. So far despite thrashing about, there has been no sign of any ability to re-invent themselves as something different.