Tantalizing Signs Of A Possible Tie-Up Between Apple And SpaceX

It is hardly a secret that Elon Musk wants SpaceX to provide satellite connectivity to Apple iPhones via its Starlink network. After all, the mega-billionaire tried to sell the idea to Apple a few years ago, albeit unsuccessfully.

Now, however, this previously incorporeal tie-up idea does seem substantially closer to getting realized, courtesy of a few tantalizing developments.

The Information: SpaceX is about to support Apple's iPhone radio spectrum just as 5G satellite support for iPhones is now imminent

The Information publication has pointed towards a series of developments, which, when taken together, form a tantalizing framework for a potential tie-up between Apple and SpaceX.

These developments include:

1. SpaceX's new Starlink satellite designs now support the radio spectrum that Apple uses for its iPhones.
2. Apple currently uses Globalstar's satellite connectivity for its 'Emergency SOS' service, which allows iPhone users to contact emergency services when outside of cellular and Wi-Fi coverage.
3. The tie-up with Globalstar also enables iPhone users to share location and exchange messages with personal contacts and first responders.
4. Apple and Globalstar, however, appear to be drifting apart, with the chair of Globalstar, James Monroe, recently discussing the possibility of selling his company for over $10 billion.
5. Globalstar continues to struggle with Starlink's dominance, even as Apple has invested around $2 billion into the company over the past few years.
6. It is unlikely that Apple will buy Globalstar as the Cupertino giant does not want to be regulated as a carrier. It is partially due to this reason that it has yet to charge iPhone users for Globalstar's satellite services.
7. SpaceX acquired EchoStar's wireless spectrum for $17 billion last month, enabling Starlink to provide faster internet services to phones around the globe.
8. SpaceX President, Gwynne Shotwell, recently announced that the company was working with chipmakers to integrate satellite connectivity directly into smartphones.
9. According to The Information, Apple plans to add support for satellite-based 5G internet "as early as next year."

There are, however, a few hurdles in front of this potential tie-up, including the bad blood between Elon Musk and Apple's Tim Cook.

Back in 2022, Elon Musk had tried to sell a potential partnership between Apple and SpaceX, proposing at the time that SpaceX become Apple's exclusive satellite connectivity provider for the next 18 months at least, demanding an upfront payment of $5 billion in return, and $1 billion per year after the end of the exclusivity period. Apple had rejected Musk's plans at the time.

More recently, Musk's AI company, xAI, sued the Cupertino giant for supposedly manipulating App Store rankings to hurt its Grok chatbot and favor OpenAI's ChatGPT.

Note: The post has been updated with information on Apple's purported plans to add satellite-based 5G internet to its iPhones by 2026.

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