Patrick McGee

Yeah, so the early years of making the iPhone, Apple was really proprietary about all its processes. It would not want those suppliers to, like, market their opportunities, their technical capabilities to everybody else. But what happens is when they, like, obviate the need for a new design by Johnny Ive taking a corner and, like, getting rid of aluminum or something like that.

Yeah, so the early years of making the iPhone, Apple was really proprietary about all its processes. It would not want those suppliers to, like, market their opportunities, their technical capabilities to everybody else. But what happens is when they, like, obviate the need for a new design by Johnny Ive taking a corner and, like, getting rid of aluminum or something like that.

Yeah, but if you sort of remove some aspect of the phone and you no longer need that supplier and they're so dependent on you, well, what happens? They go bankrupt. So instead, Apple begins to say, that's a problem for us. So we deliberately say to our suppliers, however fast you're growing with us, with Apple, grow that fast with somebody else, because otherwise you're going to be too dependent.

Yeah, but if you sort of remove some aspect of the phone and you no longer need that supplier and they're so dependent on you, well, what happens? They go bankrupt. So instead, Apple begins to say, that's a problem for us. So we deliberately say to our suppliers, however fast you're growing with us, with Apple, grow that fast with somebody else, because otherwise you're going to be too dependent.

Exactly. But if I'm building a component for an iPhone, what is the skill set I have and what can I do with it? Of course, I'm going to supply Huawei and Oppo and Vivo.

Exactly. But if I'm building a component for an iPhone, what is the skill set I have and what can I do with it? Of course, I'm going to supply Huawei and Oppo and Vivo.

So in 2019... Don't you read the books I give you, though? So in 2019, Huawei, China's national champion, outsells the iPhone globally. Apple is panicking about this. And I've got all these internal emails that have never been reported on where, I mean, Tim Cook and others basically understand for weeks ahead of an earnings call that Huawei is the reason why their phone isn't selling well.

So in 2019... Don't you read the books I give you, though? So in 2019, Huawei, China's national champion, outsells the iPhone globally. Apple is panicking about this. And I've got all these internal emails that have never been reported on where, I mean, Tim Cook and others basically understand for weeks ahead of an earnings call that Huawei is the reason why their phone isn't selling well.

And they deliberately obfuscate this from Apple.

And they deliberately obfuscate this from Apple.

I mean, the chapter is called Five Alarm Fire because a VP at Apple, that's what he describes the situation. Like, how do we get sales to be better? And Tim Cook tells deputies, quote, this is a disaster. We need all hands on deck now. And then when he speaks to investors a week or two later, all is fine. Internally, China's sales forecast is actually shrinking. It's not going slowly.

I mean, the chapter is called Five Alarm Fire because a VP at Apple, that's what he describes the situation. Like, how do we get sales to be better? And Tim Cook tells deputies, quote, this is a disaster. We need all hands on deck now. And then when he speaks to investors a week or two later, all is fine. Internally, China's sales forecast is actually shrinking. It's not going slowly.

It's shrinking. And they don't tell investors any of this. So that's a crazy thing. Now, Trump comes into office basically saying he's going to get his consumers, his citizens, what am I trying to say? His fans. His fans. To boycott Apple. Yes. He's really harsh on Apple. That's right. Wants everything to be built in America. That's right. Wants them to come back. He's laying the wood on them.

It's shrinking. And they don't tell investors any of this. So that's a crazy thing. Now, Trump comes into office basically saying he's going to get his consumers, his citizens, what am I trying to say? His fans. His fans. To boycott Apple. Yes. He's really harsh on Apple. That's right. Wants everything to be built in America. That's right. Wants them to come back. He's laying the wood on them.

Instead, he totally saves them. Yes. Because when Huawei is at its peak, he goes after Huawei, deprives them of using Google, which, of course, makes Android. Declares them a security threat. Declares them a security threat and deprives them of using, you know, wonky things like Qualcomm 5G chips. Huawei's business nearly collapses.

Instead, he totally saves them. Yes. Because when Huawei is at its peak, he goes after Huawei, deprives them of using Google, which, of course, makes Android. Declares them a security threat. Declares them a security threat and deprives them of using, you know, wonky things like Qualcomm 5G chips. Huawei's business nearly collapses.

They lose $30 billion of revenue in a year and their market share really tanks. They have to, like, hive off assets and stuff. great for a while. I mean, the only company that really benefits from that is Apple. So their market share in China doubles from 9% to 17%. So they do really well. But now, and Trump to point out, Huawei's had all this time to really work hard.

They lose $30 billion of revenue in a year and their market share really tanks. They have to, like, hive off assets and stuff. great for a while. I mean, the only company that really benefits from that is Apple. So their market share in China doubles from 9% to 17%. So they do really well. But now, and Trump to point out, Huawei's had all this time to really work hard.

And so now they're sort of back with a vengeance. So now in the global smartphone world, there's iOS, there's Android, and there's Harmony OS. This is my guess. Harmony OS will become the de facto standard for all operating system phones in China. Wow. That's a guess. Right. I think an educated one. And then the question is, do they then market that overseas?

And so now they're sort of back with a vengeance. So now in the global smartphone world, there's iOS, there's Android, and there's Harmony OS. This is my guess. Harmony OS will become the de facto standard for all operating system phones in China. Wow. That's a guess. Right. I think an educated one. And then the question is, do they then market that overseas?