Apple Inc. announced a significant investment of up to $1.5 billion in Globalstar, a satellite communications provider, aiming to expand its iPhone communication services through enhanced satellite connectivity. This investment includes $1.1 billion in cash and a 20% equity purchase in Globalstar valued at $400 million, which will also help Globalstar reduce its existing debt.
Following the announcement, Globalstar’s shares surged over 30%, reflecting strong investor optimism about the partnership’s potential to expand satellite services in areas with limited network access. In contrast, Apple’s stock saw a slight decline of around 1.4%, likely impacted by its recent projection of modest revenue growth in the upcoming quarter.
Under the terms of the agreement, Globalstar will allocate 85% of its network capacity to Apple. This partnership builds upon the two companies’ 2022 collaboration, which enabled iPhone users to send emergency messages via satellite when outside standard mobile coverage areas. The deal is set to close on Tuesday.
This move is part of a broader industry trend where tech companies are working with satellite providers to offer connectivity in remote areas. Companies like T-Mobile and Verizon have also formed partnerships with satellite firms, such as SpaceX’s Starlink and Amazon’s Project Kuiper, to strengthen their emergency messaging and connectivity options.
