In a bold move that shook the tech world, Elon Musk approached Apple in 2022 with a $5 billion offer to integrate SpaceX's satellite technology into the iPhone. Just weeks ahead of the iPhone 14 launch, Musk proposed that SpaceX would power global satellite connectivity for iPhones with an initial $5 billion payment and a follow-up $1 billion annually after an 18-month exclusivity window.
But there was a catch: Apple CEO Tim Cook had just 72 hours to accept the offer, or Musk would develop a rival satellite service designed to work independently with smartphones, including iPhones.
Apple Rejects Musk's Offer and Chooses Globalstar
Rather than partner with Musk’s SpaceX, Apple made a more conservative choice by teaming up with Globalstar, a smaller satellite communications provider. Although SpaceX promised more robust and expansive satellite capabilities, Apple prioritized stability, control, and a more measured rollout strategy.
Musk responded by launching Starlink Direct to Cell in collaboration with T-Mobile, a move that now allows smartphones, especially those on the T-Mobile network to connect via satellites without additional hardware. This has positioned Starlink as a direct competitor to Apple’s satellite connectivity plans.
The Legal Battle Over Satellite Spectrum
The rivalry didn’t end with competing services. In late 2022, SpaceX filed a legal challenge against Globalstar, arguing the company was underutilizing its allocated wireless spectrum and unfairly preventing competitors like SpaceX from entering the market.
This legal maneuver directly threatens Apple’s satellite infrastructure, as the disputed spectrum underpins the iPhone’s current satellite SOS features. If SpaceX succeeds, Apple could face significant disruptions, potentially forcing a shift to new providers or technologies.
Internal Concerns Within Apple’s Executive Team
Beyond legal issues, Apple’s satellite ambitions have sparked internal debate. Senior Apple executives including Craig Federighi and Adrian Perica reportedly voiced concerns over the decision to rely on Globalstar. Sources claim that Globalstar’s aging network lacks the speed and coverage needed to meet Apple’s long-term goals.
Insiders also worry that Apple’s deepening relationship with Globalstar might trigger regulatory scrutiny, especially over whether the tech giant could be reclassified as a telecommunications provider; a shift that could alter its entire operating model.
Despite these challenges, Apple has already committed $1.7 billion to Globalstar, including $1.1 billion earmarked for launching and upgrading satellites. This signals Apple’s firm commitment to its satellite roadmap, even in the face of rising opposition.
Starlink vs. Globalstar: The Race for Satellite Supremacy
With Starlink expanding and Apple doubling down on Globalstar, the competition for satellite-powered smartphone connectivity is far from over. Elon Musk’s aggressive push into mobile satellite services has raised the stakes, and Apple now faces both external pressure from competitors and internal tension among top leadership.
This showdown has the potential to reshape the future of mobile communication. Whether Apple’s steady approach or Musk’s bold innovation will come out on top remains to be seen, but one thing is certain: the battle for satellite connectivity dominance in smartphones has only just begun.