Elon Musk gave Apple 72 hours to make a decision. Tim Cook refused - and paid the price for it.

Calendar 7/14/2025

Elon Musk offered Apple a $5B Starlink deal. Tim Cook said no and chose Globalstar. Did Apple make a mistake?

In the world of technology, competition is abundant, but few rivalries carry as much tension, ego, and future consequences as this one: Elon Musk versus Tim Cook. In the background? An attempt to take over the future of satellite communication in smartphones. Musk made Apple an offer that was meant to change everything. Cook said "no". And then the war began.

5 billion dollars, 72 hours, and the vision of an iPhone powered by Starlink

Even before the world saw the iPhone 14 in 2022, Elon Musk knocked on Apple's door with a very specific proposal: his company SpaceX would provide Apple with Starlink satellite connectivity that would work in iPhones - globally.

The offer was quite something: 5 billion dollars upfront, and after 18 months of exclusivity - a billion dollars a year. Musk believed that Apple simply had to accept such a deal. And he set the clock: 72 hours to decide.

Apple – represented by Tim Cook – declined. Instead, the giant from Cupertino opted for a smaller partner: Globalstar. No risk, no Elon, no drama. But this decision triggered a chain of events that continues to this day.

Starlink Direct to Cell: Musk does his thing, iPhone works without Apple

Instead of taking offence, Musk got to work. Together with T-Mobile, he created the "Starlink Direct to Cell" service, which allows for direct satellite communication in smartphones – including iPhones – without the need for hardware changes or external antennas.

Irony? The iPhone, despite not accepting Musk's offer, can still operate on Starlink – as long as the user is using the T-Mobile network. Meanwhile, Apple is sticking to its deal with Globalstar, offering emergency SOS via satellite – but only under limited conditions and in specific regions.

Musk not only did it his way. He did it faster, broader, and… more effectively.

War for the Band: SpaceX vs Globalstar, Apple in the Middle

In 2022, SpaceX challenged Globalstar's right to use a specific radio band – the very one that Apple uses in iPhones for emergency communications. According to SpaceX, Globalstar is not fully utilising this band, hindering the development of competing technologies – including Starlink.

If SpaceX wins, Apple may find itself without a key resource for its satellite service. And that means one thing: Apple may have to return to negotiations with Musk.

Issues Inside Apple. Is Globalstar a Dead End?

Not only external competition is a problem. According to unofficial reports, frustration is growing within Apple regarding the partnership with Globalstar. Craig Federighi, head of the software division, and other top managers have reportedly expressed concerns about Globalstar's aging infrastructure and the lack of serious investments in development.

This means one thing: Cook's decision to stay away from Musk may already be costing Apple internally more than anyone expected.

It’s not just a fight for coverage. It’s a fight for the future

Today, it’s not just about who can deliver more megabits from orbit. It’s about who will take control of connectivity in crisis situations, in remote locations, in a future of smartphones that knows no boundaries of mobile networks.

Musk plays aggressively – with offers, satellites, and legal actions. Apple, as usual, plays the long game – with security, control, and cautious partnerships.

But one thing is certain: in this battle, it’s no longer just about technology. It’s about who will define what the smartphone will be in 2030.

Katarzyna Petru Avatar
Katarzyna Petru

Journalist, reviewer, and columnist for the "ChooseTV" portal