Elon Musk threatened Apple if it didn’t accept his $5 billion offer: Hours later, he followed through on the threat

In the summer of 2022, Apple was preparing to unveil its new iPhone 14 to the world. However, what Tim Cook—the CEO of the Cupertino brand—did not expect was a call from Elon Musk, the head of well-known companies like SpaceX and Tesla. “You have 72 hours. Either you pay $5 billion to integrate Starlink, or I become your direct competitor.” These were the threatening words from the tech magnate. Years later, the consequences of that call and Cook’s refusal are visible both in the sky and on our iPhone devices; so much so that Musk didn’t realize that the idea of a satellite-connected iPhone wasn’t new to the Apple brand.

A phone call, an ultimatum, and a refusal

Back in 2015, Apple launched Project Eagle, an ambitious collaboration with Boeing to deploy its own satellite program with a clear goal: to provide broadband and wireless connectivity without relying on an operator for all its devices, as well as to guarantee internet access in every home. However, both regulatory risks and the fear of directly competing with its partners AT&T and Verizon—carriers that provide service for much of its iPhone user base in North America—led Tim Cook to abandon the project.

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For this reason, Apple chose a much less ambitious but also safer path: a satellite SOS emergency service developed in collaboration with Globalstar, a company much more approachable and compliant than Musk and his SpaceX. That said, Musk was not resting on his laurels. Two weeks before the iPhone 14 launch, the magnate revealed his plan: a partnership with T-Mobile to launch Starlink Direct to Cell, a telecommunications project that would allow any smartphone to access internet connectivity from anywhere, without the need for dedicated hardware.

Thus, while iPhones settled for their own SOS network, Musk’s Direct to Cell project allowed users to make calls, send messages, and browse the internet even from the top of Mount Everest. Ironically, iPhones can now access this service—provided they do so through T-Mobile. By refusing to give in to Musk’s ultimatum, Apple avoided relying on a partner as unpredictable as he is brilliant. And while some saw this move as a demonstration of strategic prudence, others view it as a missed opportunity.

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