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Apple has announced a substantial investment of $1.1 billion in satellite communications company Globalstar, coupled with an additional $400 million for a 20% equity stake in the company. This move positions Apple at the forefront of the low Earth orbit (LEO) market, further integrating satellite connectivity into its ecosystem for enhanced consumer reach and capabilities.
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Emma Mohr-McClune, Chief Analyst for Technology at GlobalData, remarked on the significance of this deal for the connectivity market. “This is the most notable consumer OEM LEO deal to date and solidifies Apple’s lead among western OEMs in offering direct satellite-to-device (D2D) voice, messaging, and potential calling services for both emergency and off-grid use,” she stated.
The expanded partnership follows Apple’s 2022 agreement that initially allowed iPhone 14 users to access Globalstar’s 31 L-band satellites for emergency texting. With iOS 18, this capability has grown to support remote usage. Apple’s $1.1 billion in service prepayments will allow Globalstar to upgrade its satellite constellation, bolster ground infrastructure, and expand global mobile satellite service (MSS) licenses, while Globalstar will continue dedicating 85% of its network capacity to Apple.
This strategic partnership could impact mobile network operators, as Apple’s iPhones may offer more comprehensive satellite services independently of carriers. Mohr-McClune pointed out that, while Apple’s consumer monetization plans for satellite services remain unclear, premium offerings are anticipated, likely post-2025.
With this expanded investment, Apple asserts a new role in connectivity, aiming to enhance user experience by providing accessible satellite communication for iPhone users across emergency and remote settings.
