they did before. It's just that Intel made better and faster CPU's, that were lower cost. This is back in the 80's, when they were trying to push their own CPU out and justify why x86 was no good and their architecture was better. This didn't work.
They made a pretty big booboo in the 90's though, as they started to use the Cyrix design (5x86 and other's) and marketed them as their own. That was the start of the PR rating (now AMD is using the same thing).
IBM has left the personal PC market anyhow, sold their division.
there are times when it is not justifiable to put the resources into making/designing your own product. CPU's are not as easy to design as people think. It's very very complex work. And if you can't make it at a less cost than it would be to purchase it, it's a very bad thing, especially when you are publicly traded.