[jordanlev]

Are the entire products outsourced, or just the componenets?

Either way, I think this suggestion is implying that Apple stop selling hardware and instead just sell software that runs on other peoples' hardware (it's the "compete more directly with Microsoft" bit that leads me to believe this is what they meant).

[L_Rahman]

Virtually all products are outsourced. Apple owns no factories and employs no assembly line workers.

Instead it's formed deep partnerships with certain contract manufacturers (Foxconn). When it wants to pioneer a certain manufacturing technique, it will simply make a large capital expenditure to make the tooling available to the contract manufacturer. Never however will it actually be responsible for the actual manufacturing and assembly of its devices.

This is Tim Cook's doing and it's the model for just about every OEM you see today, from Apple to Xiaomi. Samsung and LG are notable exceptions because they are component manufacturers who became OEMs afterwards.

Edit: There might be some iMac assembly done in the United States, but this is likely using a US-based contract manufacturer as well.

[microtherion]

Yes, hardware building is largely outsourced, but it's not Dell-style outsourced, where the contract manufacturer does a considerable part of the design. Today's Apple products probably have less generic design in them than 1997 Apple products, and more control by Apple.