Phynaz
Lifer
Chips weren't that much cheaper to design back then.
They are immensely more expensive to design today.
Think about how much larger the design teams are. The cost of a mask set today is 10x what it was a decade ago.
When you say that Intel had 40% margins back then, you are forgetting about volume. All that R&D is spread over a much larger number of chips today.
Just look at the charts of R&D spending that IDC has posted. I don't know an exact number, but if you take the 11% 2010 - 2011 increase and extrapolate over a decade that comes out to a nearly 3x cost increase.