Apple buys 20% stake in iPhone satellite service partner Globalstar
Apple buys 20% of Globalstar for $400M to expand satellite messaging on iPhones.
Apple has made a strategic investment by purchasing a 20% stake in Globalstar, at a cost of $400 million, to enhance its satellite communication capabilities. The funds will support Globalstar's expansion efforts both terrestrially and extraterrestrially, including building new satellite constellations and improving global infrastructure.
Collaboration between Apple and Globalstar began in 2022, originally for emergency messaging for iPhone 14 users without traditional network access. With the release of iOS 18, the service now supports non-emergency communications such as SMS and iMessage, offering end-to-end encryption for enhanced security.
Furthermore, Apple has committed up to $1.1 billion in infrastructure pre-payments, aiming to support construction and reduce Globalstar's debt. The deal is anticipated to finalize soon, and while there's speculation Apple might eventually charge for the service, details are yet to be unveiled.