They had vertical integration and made bank. Then each layer got more complex as computing became mainstream, and IBM got out-competed on everyone of them by specialized companies. And then they sold them off. The only layer that remains is the most strategic: the customer relationship.
In some areas IBM still holds if not a technological advantage at least the first among equals position, they just aren't areas that are flashy or generally known outside of folks like us - Mainframes and related technologies for example, the IBM Z series is still a huge player there.
IBM is now just a consultancy.