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Apple is working to enhance satellite-based services for iPhone users, focusing on improving connectivity in areas lacking cellular coverage.
Building on its 2022 collaboration with Globalstar, Apple’s latest investment aims to bolster its position in the growing direct-to-device (D2D) satellite communication market.
Apple has committed $1.5 billion to satellite communications company Globalstar, which includes a $1.1 billion cash investment and a $400 million allocation for a 20% equity stake in the business.
A game-changing partnership in low Earth orbit connectivity
This new deal between Apple and Globalstar represents one of the most substantial consumer OEM investments in low Earth orbit (LEO) satellite technology to date.
Globalstar, which operates 31 satellites, plans to use Apple’s funds to expand its network.
The company has already ordered up to 26 additional satellites to strengthen its LEO constellation, ensuring broader and more reliable coverage. Approximately 85% of Globalstar’s network capacity will remain dedicated to Apple’s services, underscoring the strategic significance of this partnership.
With Globalstar, Apple will further position itself as a leader in the D2D satellite communication market – a field that enables standard smartphones to connect directly with satellites. The announcement has already had a notable market impact, with Globalstar’s stock rising by 31.4%.
The deal could have a significant impact on the connectivity ecosystem, as the largest and most important consumer OEM low Earth orbit (LEO) agreement to date.
Via CNBC
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