Apple has committed approximately $1.5 billion to support the expansion of Globalstar, a satellite communications company, in a move to enhance iPhone connectivity services. The investment, disclosed in a securities filing, includes $1.1 billion in cash, with $232 million directed to address Globalstar’s existing debt, alongside a 20% equity stake. The transaction is set to be finalized on Tuesday.
Apple has already been investing hundreds of millions of dollars in Globalstar’s satellite services. This partnership enabled the launch of emergency satellite texting capabilities for iPhones in 2022, marking a significant advancement in Apple’s direct-to-device (D2D) connectivity options. Through D2D, unmodified devices such as smartphones can receive direct satellite service from space, a market where companies like SpaceX, AST SpaceMobile, Iridium, Lynk, and EchoStar are also vying for a foothold.
Globalstar’s stock surged by 31.4% to close at $1.38 per share following the announcement. According to the filing, Apple will continue to occupy approximately 85% of Globalstar’s network capacity. This investment will allow Globalstar to expand its satellite network and ground infrastructure, a necessary step for supporting the anticipated growth in D2D services.
Currently operating a fleet of 31 satellites, Globalstar has already initiated orders for up to 26 new satellites to replenish and upgrade its low Earth orbit (LEO) constellation. This satellite expansion will bolster Globalstar’s capacity and resilience, aligning with the growing demand for global satellite connectivity on mobile devices.
This collaboration with Globalstar is part of Apple’s broader strategy to enhance iPhone functionality by integrating satellite connectivity. Emergency satellite texting, one of the features already enabled by Globalstar, allows iPhone users to send emergency messages when out of cellular range. This feature not only sets Apple apart in the smartphone market but also highlights its commitment to safety and accessibility, as the company aims to deliver essential services even in remote locations.
With other key players like SpaceX and AST SpaceMobile also pursuing D2D satellite technology, Apple’s partnership with Globalstar underscores its interest in securing a leading role in this rapidly evolving sector. By providing significant resources to expand Globalstar’s satellite constellation and infrastructure, Apple is positioning itself to offer reliable satellite-powered services to iPhone users worldwide.
This agreement solidifies Apple’s relationship with Globalstar while supporting the satellite company’s growth and technological enhancements in the competitive field of D2D connectivity.
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