Apple to expand iPhone satellite capability with £1.5bn commitment
Apple Inc.
$222.01
13:04 04/11/24
Apple strengthened its partnership with satellite communications firm Globalstar, it was reported on Friday, by committing around $1.5bn to expand iPhone satellite services, according to a recent securities filing.
Dow Jones I.A.
41,794.60
04:30 15/10/20
Globalstar Inc.
$1.82
04:30 04/11/24
Nasdaq 100
19,963.60
12:15 04/11/24
The deal, according to CNBC, included $1.1bn in cash, with $232m earmarked to help reduce Globalstar’s existing debt, granting Apple a 20% equity stake in the company.
It was expected to close imminently.
The investment would support Apple’s strategy to enhance its iPhone’s satellite capabilities, first showcased in 2022 with the rollout of emergency satellite texting.
CNBC said the new funding would allow Globalstar to expand its satellite network and ground infrastructure, enhancing the direct-to-device (D2D) satellite services that enable smartphones to connect directly to satellites in space.
Under the agreement, Globalstar would reportedly dedicate about 85% of its network capacity to Apple, which had been an ongoing supporter, investing hundreds of millions in Globalstar’s services.
Globalstar, which currently operates 31 satellites, had already ordered up to 26 additional satellites to bolster its low Earth orbit constellation, ensuring a more robust and reliable service for Apple’s global iPhone user base.
Reporting by Josh White for Sharecast.com.