Maybe the problem is, they stopped making parts and focused on "system integration".
It sounds wonderful and high-level. Faced with hordes of competitors from overseas, people in developed economies tell themselves that they excel at higher order skills, like management and leadership, and big picture thinking. This is especially popular with managers. So things like "vison", "systems thinking" and "the big picture" become your priority, not the nuts and bolts.
But in reality, you become like Dell, rather than Intel. In a vertically integrated market; system builders are the kings, and parts makers are small players trying to get their foot in the door. In a horizontally integrated market; system builders compete on margins, while parts builders compete on quality. And competing on margins is a good way to make peanuts.