Yeah, this is one of many mistakes IBM has (and continues to. . .) made.
"Companies that have low margins and high capital spending requirements will never be able to maintain the same kind of moat. Further, poor capital allocation decisions by management may result in the business underinvesting and undermarketing, impacting the defense of the moat (possibly the mistake IBM (NYSE:IBM) made by returning too much money to shareholders and not investing enough in its own brand)."
https://www.gurufocus.com/news/538323/warren-buffett-on-the-economic-moat