Apple Rejected Elon Musk’s $5 Billion Starlink Deal, Says Report
Apple quietly explored building its own satellite internet service as far back as 2015, working with Boeing on a plan to deliver full wireless internet—not just emergency access—to iPhones and homes, according to people familiar with the matter, reports The Information.
The internal effort, known as Project Eagle, would have involved launching thousands of Boeing satellites into orbit to beam internet directly to Apple devices. For home users, Apple considered window-mounted antennas to spread the signal indoors.
But the project was ultimately shelved. CEO Tim Cook reportedly pulled back over concerns that competing with telecom carriers would strain Apple’s long-standing partnerships with them.
Years later, Elon Musk proposed a deal of his own. In 2022, SpaceX pitched Apple on an 18-month exclusive agreement to provide Starlink satellite service to iPhones in exchange for a $5 billion up-front payment, followed by $1 billion a year after the exclusivity period ended, said people with direct knowledge of the talks.
Musk also issued a threat: if Apple didn’t accept the deal within 72 hours, he would launch a similar feature independently. Apple declined. Just weeks later, SpaceX and T-Mobile announced a partnership to bring satellite-powered texting to smartphones, which was revealed in August 2022—two weeks before Apple unveiled the iPhone 14.
In the end, we now have T-Mobile and Starlink’s Direct-to-Cell about to take over the globe. Meanwhile, Apple only offers its satellite service as an emergency service. If true, you have got to love Musk’s timed offer to Cook.
