Apple turned down a $5 billion offer from Elon Musk’s SpaceX in 2022, blocking what could have been a major shift in iPhone satellite connectivity. The deal, proposed shortly before the launch of the iPhone 14, would have made SpaceX the exclusive satellite provider for Apple devices for 18 months. Apple declined, and Musk moved on, striking a deal with T-Mobile to offer similar features.
According to The Information, this decision reveals deeper internal resistance at Apple toward expanding its satellite ambitions. Concerns over disrupting relationships with mobile carriers, federal regulatory pressure, and reliance on Musk all played a role.
Apple’s Abandoned Satellite Vision
Since 2015, Apple has explored plans to create a full satellite internet network, not just for emergency use, but for direct connectivity to iPhones and homes. The effort, known internally as Project Eagle, included discussions with Boeing to launch thousands of satellites. Apple envisioned selling window-mounted antennas to deliver the internet across homes.
But by 2016, Apple canceled the project. CEO Tim Cook was reportedly uneasy about the plan’s massive cost, uncertain business model, and most importantly, its potential to alienate telecom partners. Apple spent $36 million testing the concept before pulling the plug. Later discussions with other satellite firms like OneWeb also collapsed under similar concerns.
Apple shifted its focus to niche satellite features like Emergency SOS via Satellite, which launched in 2022 using the Globalstar network. However, that service is limited, slow, and expensive to maintain. Apple has extended free access through September 2025 but has avoided monetizing it, fearing it could trigger telecom regulation and surveillance requirements.
Musk’s Offer and Apple’s Reluctance
In 2022, as Apple prepared to unveil satellite features on the iPhone 14, Musk offered SpaceX’s Starlink network to serve iPhones directly.
As reported by The Information, Musk demanded $5 billion up front and $1 billion annually after the exclusivity period. He gave Apple 72 hours to accept. Apple rejected the deal.
Two weeks later, SpaceX announced a partnership with T-Mobile, offering text services in remote areas using Starlink. The move bypassed Apple and placed pressure on its limited satellite ambitions.
Apple executives remain divided over the future of satellite services. Some, including software chief Craig Federighi, reportedly advocate shutting them down altogether, arguing carriers should handle such features.
