Tim Cook's Apple And Elon Musk's SpaceX Engage In A Heated Battle Over Satellite Tech And App Control: Report
The rivalry between Apple Inc. and SpaceX is intensifying over satellite technology aimed at eliminating cellphone dead zones. Apple is investing heavily in satellite communications, while SpaceX has launched over 550 satellites for its Starlink service. Both companies are competing for limited spectrum rights, leading to tensions, especially after SpaceX lobbied against Apple's satellite expansion. Despite discussions for collaboration, no agreement has been reached, highlighting the significance of satellite technology in telecommunications and the ongoing competition between the two tech giants.
The reported rivalry betweenTim Cook‘s Apple Inc.AAPL and Elon Musk‘sSpaceXis heating up over satellite technology designed to eliminate cellphone dead zones.
What Happened: Apple is pouring significant resources into satellite-based communications, while SpaceX has already launched over 550 satellites for its Starlink service. According to areport by The Wall Street Journalon Tuesday, both companies are vying for limited spectrum rights to transmit their signals, leading to increased tensions. Apple’s satellite investments have reportedly irked Musk, leading SpaceX to lobby regulators to delay an Apple-backed satellite expansion.
Apple, SpaceX did not immediately respond to Benzinga’s request for comment.
The conflict escalated when SpaceX and its partner, T-Mobile (NYSE: TMUS, approached Apple for collaboration to bring Starlink to iPhones. After intense negotiations, an agreement was reached allowing the SpaceX and T-Mobile satellite cellphone service to appear on newer iPhones. Notably, Apple will maintain strict control over the iPhone’s mostly closed software ecosystem.
Last year, the tech giant invested more than $1 billion in satellite operator Globalstar, which powers Apple’s built-in satellite connectivity feature for iPhones. This service allows users to send text messages and call for emergency assistance in areas without traditional cellphone service.
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However, SpaceX recently urged the Federal Communications Commission to reject Globalstar’s application for permission to utilize specific spectrum for Apple’s new satellite network.
Why It Matters: The ongoing rivalry between Apple and SpaceX underscores the growing significance of satellite technology in the telecommunications industry.
Elon Musk and Apple are in a feud over satellite services, as both companies see potential benefits from greater connectivity in remote areas—boosting iPhone sales for Apple and Starlink adoption for SpaceX. While they have discussed linking iPhones with SpaceX satellites, no deal has materialized.
Their rivalry extends beyond satellites, including past competition for driverless car talent and tensions over Apple's control of app distribution and advertising on X. Musk has even considered creating his own smartphone out of frustration with Apple's control over third-party apps.
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