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Elon Musk’s failed attempt to secure a massive satellite deal with Apple has escalated into a legal battle that threatens to shut down the iPhone’s emergency features.
SpaceX offered Apple an exclusive 18-month partnership in 2022 for $5 billion upfront, plus $1 billion annually afterward. Musk gave Apple CEO Tim Cook just 72 hours to accept the proposal before the iPhone 14 launch, according to a report.
Apple rejected the offer. Cook worried the deal would damage relationships with major carriers like AT&T and Verizon.
“Launching the service would endanger Apple’s relationship with telecom operators,” Cook explained, according to a report from The Information.
Musk made good on his threat within weeks. SpaceX announced a partnership with T-Mobile for satellite texting just before Apple revealed its iPhone 14 emergency features.
The rivalry has since turned into regulatory warfare. SpaceX is now challenging Globalstar’s spectrum rights through filings with the Federal Communications Commission (FCC). Apple depends on Globalstar’s network for its iPhone satellite services.
“This shell game serves one purpose: to block competitive entry in frequencies Globalstar has never meaningfully used,” David Goldman, SpaceX’s vice president of satellite policy, wrote in the filing.
If SpaceX wins these challenges, Apple’s satellite features could stop working entirely. The company would likely need to turn to Musk’s Starlink service to restore functionality.
Apple’s satellite ambitions once reached much further than emergency services. The company spent $36 million testing “Project Eagle” between 2015 and 2016. This project aimed to deliver full internet service to homes and iPhones using thousands of Boeing satellites.
Cook canceled the project over carrier relationship concerns and high costs. Apple later explored partnerships with OneWeb in 2018, but talks collapsed when the price hit $30 billion.
The current Globalstar partnership costs Apple “hundreds of millions” annually. Some top executives now question whether satellite features are worth the expense. Craig Federighi, Apple’s software chief, and Adrian Perica, head of corporate development, have reportedly opposed continuing the satellite program.
Apple faces additional regulatory risks if it expands beyond emergency services. The government could classify Apple as a telecommunications carrier, requiring the company to build surveillance backdoors for law enforcement. These concerns explain why Apple hasn’t charged users for satellite features despite the massive costs.
Meanwhile, Apple has committed $1.7 billion to expand Globalstar’s satellite network. The investment suggests the company plans to maintain its current emergency-focused approach rather than pursue broader satellite internet services.
Musk’s relationship with the Trump administration adds another layer of complexity. Apple executives worry this political connection could give SpaceX advantages in regulatory battles.
The satellite war reflects broader tensions between the tech giants. Musk has criticized Apple’s App Store fees and threatened to build a competing smartphone if necessary.
For now, iPhone users can still access emergency satellite messaging and SOS features. But Apple’s satellite future remains uncertain as legal challenges continue.
