Globalstar to strengthen iPhone satellite connectivity with Apple investment

In a move to boost satellite communication services, Apple has committed up to $1.5B to satellite provider Globalstar, significantly expanding its iPhone connectivity capabilities in remote areas.

Apple has announced a substantial investment of up to $1.5B in satellite provider Globalstar to expand iPhone communication services, particularly in areas with limited network access. This new agreement follows Apple’s initial partnership with Globalstar in 2022, which enabled emergency messaging capabilities in remote locations. Under the deal, Apple will invest $1.1B in cash, secure a 20% stake in Globalstar for an additional $400M, and gain access to 85% of Globalstar’s network capacity.

Shares of Globalstar surged by over 30% following the news, while Apple’s stock dipped slightly as it forecasts modest revenue growth for the coming quarter. Globalstar indicated that a portion of Apple’s funding will help reduce its debt, further strengthening its infrastructure.

The collaboration between Apple and Globalstar highlights a growing trend of partnerships between tech and satellite companies aiming to provide seamless satellite-based connectivity to underserved regions. The deal is expected to finalise on Tuesday, paving the way for expanded services on future iPhone models.