Elon Musk the worlds 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 Musks 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 wouldnt 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 Musks 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 Musks 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 Musks 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 giants 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 companys 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.