Channels with Peter Kafka

How Apple trapped itself in China

Channels with Peter Kafka

The iPhone you’re reading this on was made in China. For a long time, that fact was a huge part of Apple’s success story: Working hand-in-hand, Apple and China built a sophisticated supply chain that let Apple manufacture very complicated technology at an enormous scale. Now that relationship seems like Apple’s achilles heel, says Patrick McGee. McGee covered Apple for the Financial Times for years. Now his new book “Apple in China” explains how Apple ventured into China, spent years and tens of billions of dollars investing in the country’s production infrastructure, and now seems trapped there — and in the middle of the U.S./China trade war. McGee’s book is in large part a history book, and one that I’d recommend to anyone who wants to understand Apple, and China. It’s also, obviously, a very timely one. So this interview is part “how did we get here” and also “what happens next”. (Spoiler: Moving Apple’s production to India and Vietnam — something you read about periodically — isn’t going to happen, if ever, for years.) Learn more about your ad choices. Visit podcastchoices.com/adchoices

Ian Rogers tells me I need a crypto wallet

Channels with Peter Kafka

I wanted to talk to Ian Rogers about his fascinating career. He wanted to talk to me about Ledger, the crypto wallet company he’s working at now. So we did both things. Background: Rogers was an important figure in the digital music business, back when the music business was being fundamentally reshaped by digital. He helped the Beastie Boys get on the internet, long before every band did that. Then he helped bring digital music to millions of people in the MP3 era - first at AOL, then Yahoo — and then in the streaming era — first at Beats, and then Apple Music. Then he did digital stuff at LVMH, the luxury goods conglomerate. Now he’s chief experience officer at Ledger, a French company that has sold 7 million physical storage devices for crypto. I remain confused and skeptical about crypto, but I’m always open to hearing from folks who are passionate about it — to see if they can convince me that I’m missing something. And the most persuasive argument I hear is usually from folks like Rogers — people who were around when the internet was novel and exciting in the 90s, and think they’re seeing the same kind of tectonic shift this time around. It’s a pitch that’s part FOMO — you wouldn’t want to be one of the people who thought the internet was a fad in 1995, right? — and part blue-sky optimism: What if it was 1995 and you could get in on the ground floor of the internet? Take a listen and let me know what you think. Learn more about your ad choices. Visit podcastchoices.com/adchoices

How to fight Apple and (maybe) win, with Epic Games CEO Tim Sweeney

Channels with Peter Kafka

Today's podcast is an in-depth discussion of Apple's App Store rules and how they... wait! Don't leave! I could try to tell you why Apple's App Store rules are important to both Apple and the digital economy (sadly, I just realized I've been covering them for nearly 15 years, so they better be important). But a better messenger for that task is Tim Sweeney, the CEO of Epic Games - the company behind Fortnite. Sweeney has spent 5 years fighting Apple in court - and by his estimation has sacrificed $1 billion in revenue - over the way Apple runs its App Store. For most of that time it seemed like a futile effort. But last week a federal judge handed Epic what could be a huge victory, and could potentially cost Apple a meaningful amount of revenue. Apple is going to appeal that ruling, but for now, Sweeney sees this a win for his own company, and many other developers who've chafed at the fees they have to pay Apple every time a consumer wants to give them money. And if you think none of that matters to you, a normal person, Sweeney is happy to explain why (he thinks) you're wrong. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Roblox CEO David Baszucki knows what your kids are doing.

Channels with Peter Kafka

Every day some 85 million people - most of them kids - show up to play, chat and spend money on Roblox. That’s a massive audience just about any tech or media company would like to have. But David Baszucki wants more: He thinks his platform can eventually command 10% of the worldwide gaming market. I spent time talking to Baszucki about those ambitions and what has to happen to make it a reality. But I also wanted to spend time getting him to explain what exactly Roblox is, and why its low-fi, user generated games resonate with his audience. It’s an unlikely special sauce that has made the company, which spent years flying under the radar, worth some $40 billion today. Learn more about your ad choices. Visit podcastchoices.com/adchoices