Apple and Musk Clash Over Satellite Ambitions

Apple and Elon Musk's SpaceX are locked in a battle for dominance in satellite-based communications, with tensions rising over spectrum rights and Musk expressing frustration over Apple's efforts, the Wall Street Journal reports.

Both companies are investing heavily in satellite technology to expand connectivity in areas where traditional wireless signals are unavailable. Apple's iPhone incorporates satellite-based communication features, while SpaceX's Starlink service utilizes a network of over 550 satellites to provide cellular connectivity.

The competition intensifies as the companies vie for limited spectrum rights, the airwaves used to transmit their signals. Musk's dissatisfaction with Apple's satellite ambitions has reportedly led SpaceX to petition federal regulators to delay an Apple-funded satellite expansion project.

The conflict escalated in recent months when SpaceX and its partner, T-Mobile, sought Apple's cooperation to integrate Starlink seamlessly onto iPhones. Following tense negotiations, an agreement was reached, allowing the SpaceX and T-Mobile satellite service, launching this summer, to appear on newer iPhones. However, Apple retains strict control over its closed software ecosystem, highlighting the ongoing power dynamic between the two tech giants.

"Offering greater connectivity in hard-to-reach areas could spur more iPhone sales or greater adoption of SpaceX’s Starlink," the WSJ reports. "In some ways, the companies need one another to pursue their respective strategies."

Apple's satellite communication feature, which enables emergency texting, calls, and roadside assistance in areas without cellular service, is currently supported by Globalstar. Apple's investment in Globalstar, exceeding $1 billion last year, is intended to expand its satellite fleet and improve space-based iPhone connectivity.

"This technology has already helped save lives," Apple stated in a recent comment. "These satellite features are designed to complement carrier offerings, giving users even more ways to stay connected."

SpaceX, however, has petitioned the Federal Communications Commission (FCC) to reject Globalstar's application for spectrum rights, arguing that the airwaves used for emergency signals on iPhones are underutilized.

SpaceX has yet to respond to requests for comment.

Adrian Perica, Apple's vice president of corporate development, has played a crucial role in navigating the tense relationship with SpaceX, according to sources familiar with the matter.

The rivalry between Apple and SpaceX extends beyond satellite technology. The two companies have competed for talent in the development of driverless cars, and have also clashed over issues related to X, Musk's social media platform, which relies on Apple for App Store distribution and advertising revenue.

Musk has previously hinted at the possibility of building a smartphone, citing frustration with Apple's control over app distribution.

"The idea of making a phone makes me want to die," Musk stated at a public event in October. "But if we have to make a phone, we will."

Analysts suggest that challenging the dominance of Apple and Samsung in the smartphone market would be a significant hurdle for SpaceX.

SpaceX's Starlink network currently boasts a far greater number of satellites than Apple's current infrastructure, leading industry experts to believe that Globalstar alone cannot fully satisfy Apple's connectivity needs.

Apple has engaged in discussions with other satellite providers over the years, including exploring an investment in EchoStar to acquire additional satellites and spectrum rights. A previous collaboration with Boeing on a satellite project ultimately failed to materialize.

Despite the challenges, industry executives highlight the potential benefits of Apple's approach, noting that its potential partners possess valuable regional and global spectrum rights accumulated over several years, offering a compelling alternative to older infrastructure.