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Apple did manufacture the Mac in California, initially. Steve wanted to vertically integrate the process code-named "sand" in which raw materials (like sand) would come into the factory and completed products would roll out.
In his conversation with the president over a year ago, he said 'these jobs will never come back to the US' and proceeded to give an example of a production change that needed to be done urgently, and the Chinese supplier was able to get a full staff in overnight to manage the change. He said that could never happen with the US work ethic.
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