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Elon Musk Reportedly Asked Apple for $5 Billion for Exclusive Access to SpaceX. The Company Had 72 Hours to Accept or Decline

  • In 2022, Musk proposed providing satellite calling services to Apple.

  • However, Apple decided not to accept the offer, even though the company had previously tried to establish its own version of Starlink.

  • Currently, there are concerns about the economic viability of Apple’s emergency calls via satellite.

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javier-pastor

Javier Pastor

Senior Writer
  • Adapted by:

  • Alba Mora

javier-pastor

Javier Pastor

Senior Writer

Computer scientist turned tech journalist. I've written about almost everything related to technology, but I specialize in hardware, operating systems and cryptocurrencies. I like writing about tech so much that I do it both for Xataka and Incognitosis, my personal blog.

263 publications by Javier Pastor
alba-mora

Alba Mora

Writer

An established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.

1583 publications by Alba Mora

iPhones have offered emergency calls via satellite since 2022, but Apple’s ambitions in this area began much earlier and extended much further. Recent reports reveal a significant turning point in this project. SpaceX CEO Elon Musk reportedly approached Apple with an exclusive deal, which the company ultimately rejected.

Exclusive access. According to The Information, in 2022, Musk learned that Apple was planning to launch a satellite connectivity service with the iPhone 14. In response, he contacted Apple’s executives with a proposal. Musk offered Apple exclusive access to SpaceX for satellite connectivity for a period of 18 months. He also purportedly requested an initial payment of $5 billion. Following that period, Apple would have to pay $1 billion annually for the service provided by Starlink.

72 hours. Musk imposed a strict deadline, giving Apple just 72 hours to make a decision. He even threatened to launch a competing service for iPhones if Apple chose to decline his offer. At that time, Musk held a significant advantage. He had an operational satellite constellation and the technology required to execute Apple’s plans.

Offer declined. Apple is said to have rejected Musk’s offer. Shortly after, the company announced support for emergency SOS calls via satellite, thanks to a partnership with Globalstar. In response, Musk followed through on his earlier threat. Two weeks before the launch of the iPhone 14, SpaceX announced an agreement with T-Mobile. This partnership enabled smartphone users to send and receive messages in areas with no mobile coverage.

Project Eagle. Apple’s aspirations in this field began much earlier. In 2015, Apple’s engineers initiated the so-called “Project Eagle.” With this initiative, the company aimed to establish a satellite network comprising thousands of satellites. The goal was to provide broadband Internet to iPhones and homes. Essentially, it was Apple’s version of Starlink. To execute this plan, Apple partnered with Boeing, and deployment was scheduled for 2019.

Apple’s fears. The tech giant ultimately canceled the project in 2016. According to The Information, Apple invested $36 million in initial testing for Project Eagle. However, two issues led to its cancellation. First, the company was concerned about its economic viability. Second, it worried that launching the service could jeopardize Apple’s important relationships with major telecommunications companies such as AT&T, Verizon, and T-Mobile. In the end, these providers could be adversely affected if Apple were to offer this type of service.

Free emergency calls. Apple continues to provide SOS emergency calls via satellite on iPhones at no cost. Analysts suggest that the company may be avoiding fees for the service out of concern that charging for it could subject Apple to government regulations affecting operators. Additionally, some employees and executives within the company are starting to question the project’s long-term viability.

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Starlink is expanding. While Apple hesitates, Musk is making significant strides. In 2024, SpaceX launched the first set of Starlink satellites capable of connecting directly to smartphones. Meanwhile, the Starlink Direct to Cell constellation is prepared to start offering LTE coverage from space. Although this is only a beta offering, it boasts 10 times the reach of any other satellite operator with a similar goal.

Image | ANIRUDH

Related | Starlink Satellites Have Revolutionized Modern Warfare. China and Russia Are Developing ‘Starlink Killers’ to Disable Them

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