Elon Musk once gave Apple 3 days to accept his Rs 55000 crore offer, Tim Cook rejected it, paid heavy price due to...
(File)
Elon Musk, the world's richest man is infamous for aggressive business tactics, and one such example was none other than Apple, when Musk reportedly issued a 3-day ultimatum to the tech giant to accept his SpaceX satellite connectivity deal for a whopping $5 billion, days ahead of the iPhone 14 launch. When Elon Musk gave an ultimatum to Tim Cook
According to reports, Elon Musk's SpaceX offered satellite connectivity for the iPhone, but Apple would have to pay $5 billion upfront for the service, and $1 billion annually after an 18-month exclusivity period. The egotistic billionaire was convinced that Apple wouldn't dare turn down such a deal, and gave Tim Cook 3 days to decide.
Musk also threatened to launch a competing service that would work directly with iPhones if Apple refused his offer. Tim Cook defies Elon Musk
However, unfazed by Musk's ultimatum and threats, Apple CEO Tim Cook turned down the offer and chose to partner with a smaller satellite communications provider (satcom), and even though the SpaceX deal would have provided more expansive satellite network for the iPhone, Cook decided otherwise due to various factors.
Scorned by the refusal, Elon Musk did exactly what he had threatened to do; the tech billionaire launched Starlink Direct to Cell, a competing satellite service that offered satellite-powered communication for smartphones, including the iPhone running a T-Mobile network. The service was a collaboration between SpaceX and T-Mobile. Musk sues Globalstar in spectrum battle
The situation presented a major legal challenge to Apple as iPhones using a T-Mobile network, could connect to Musk's Starlink Direct to Cell services, even though the devices were legally tied to Globalstar. The legal battle escalated after SpaceX challenged Globalstar's rights to an important wireless spectrum, claiming that the latter had failed to fully utilize the allocated spectrum, and was trying to block competitors from entering the market.
This directly impacted Apple as the spectrum being challenged was being used for its iPhone satellite connectivity service, which meant that it would have to find an alternative satcom provider, if SpaceX were to win the lawsuit. SpaceX legal challenge triggers internal rift at Apple
As per a report by Apple Insider, Musk's legal onslaught created internal rifts within Apple as senior executives, including its software chief Craig Federighi, and Adrian Perica, head of corporate development, expressed concerns over the tech giant's partnership with Globalstar, which reportedly has an outdated and slower network compared to its competitors like SpaceX.
Globalstar was planning to expand its satellite network, but only marginal improvements were expected over the next decade. Many Apple executives feared that the company's reliance on Globalstar could draw unwanted regulatory attention, particularly over the issue of whether Apple could be classified as a telecommunications carrier.
However, despite these reservations, Apple decided to continue its partnership with Globalstar, and has a $1.7 billion investment with the satcom provider, out of which $1.1 billion is dedicated to developing and launching new satellites.
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STORY CONTINUES BELOW THIS AD Their spectacular breakup also means the end to perhaps the most powerful of alliances in the US with many pondering who emerges as the bigger loser in this spat. Does Trump have more to lose or will Musk be the one to suffer? A bromance turns nasty It was last July when Elon Musk endorsed Trump for president and became an integral part of his campaign machinery — who can forget Musk manically jumping around at Trump rallies, funding a massive super-PAC on his behalf. Later, when Trump became US president, he returned the favour by appointing Musk to take charge at Department of Government Efficiency (Doge). When Elon Musk attached himself to Trump many began speculating when these two massive egos would, eventually, clash and that their strategic partnership would flame out spectacularly. And crash and burn the relationship did. Since late May, Musk has been vocally critical of Trump's so-called big, beautiful spending bill. 'I was, like, disappointed to see the massive spending bill, frankly, which increases the budget deficit, not decrease it, and undermines the work that the DOGE team is doing,' Musk told the TV programme CBS Sunday Morning. But Trump kept his cool and bid adieu to Musk as he called time on his service to the White House. Once out of government, though, the Tesla chief took his criticism against the bill even further. He called the bill a 'd isgusting abomination ,' threatened to politically retaliate against its supporters, and argued it would increase the debt. Social media posts by US President Donald Trump and Elon Musk are displayed on smartphones. Trump has threatened to revoke government contracts from Tesla and SpaceX CEO Elon Musk as a public feud escalates over Musk's criticism of the Trump administration's policies. AFP The US president then shot back on Thursday, while he had a sit down in the Oval Office with German Chancellor Friedrich Merz. 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And that wasn't the end, the feud kept going with Musk levelling a serious allegation, '@realDonaldTrump is in the Epstein files. That is the real reason they have not been made public. Have a nice day, DJT!' STORY CONTINUES BELOW THIS AD Consequences of the big, nasty breakup But who shall suffer from this breakup? After all, it was a mutual relationship benefiting both individuals. Many analysts and Trump watchers believe Musk shall be the big loser from this breakup. In fact, as the two bickered on social media, Tesla shares slumped — dropping 14 per cent, wiping out roughly $150 billion in market value in one of the worst days in months. Analysts and pundits believed that the losses were an indication of what might be at stake for Musk. Musk's personal net worth also took a tumble on Thursday — it fell by nearly $34 billion, making him the biggest daily loser on Bloomberg's list of the world's 500 richest people. Trump could even take the fight further with cancelling government contracts with Musk's various companies, including SpaceX and Tesla. In fact, the US president even suggested this while feuding with Musk online. 'The easiest way to save money in our budget, billions and billions of dollars, is to terminate Elon's Governmental Subsidies and Contracts,' Trump wrote. STORY CONTINUES BELOW THIS AD SpaceX headquarters is shown in Hawthorne, California. If the Trump administration pauses government contracts, SpaceX will lose billions of dollars. Reuters According to data available, last year, Musk's companies were promised $3 billion in nearly 100 contracts with 17 government agencies. Additionally, Reuters reported that if Trump did go ahead with this move, about $22 billion of SpaceX's government contracts would be at risk. In addition to hitting his businesses, this feud could also threaten Musk's stay in the US. 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First Post
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"With President Trump, being on his bad side always creates risk that you're going to get personal retaliation," Goldstein said. He doubted that such an outcome was likely, though, because many other companies have been pushing for new regulations for years. The stock has been on a roller-coaster ever since Musk endorsed Trump in mid-July 2024 in his re-election bid, gaining 169% from that point through mid-December. That was followed by a 54% slide through early April as a "Tesla Takedown" protest intensified. Musk's leadership of DOGE and alignment with the Trump administration had put off some car buyers, with sales slumping in Europe, China and key U.S. markets like California. The House of Representatives version of Trump's budget bill proposes largely ending the popular $7,500 EV subsidy by the end of 2025. Tesla and other automakers have relied on incentives for years to drum up demand, but Trump promised during the transition to end the subsidy. 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