The US-based tech giant will take a 20% equity stake in Globalstar, paying $400 million for 400,000 Class B shares and committing an additional $1.1 billion in funding for new satellites, potentially bringing Apple’s total investment to $1.75 billion.
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Globalstar, which has been providing emergency connectivity for iPhone models 14, 15, and 16 since 2022, will allocate 85% of its network capacity to Apple as part of the new deal.
Apple’s investment includes $232 million earmarked for reducing Globalstar's debt, with the remainder to finance satellite expansion and upgrades to Globalstar’s infrastructure.
According to a filing with the U.S. Securities and Exchange Commission on November 1, this deal positions Globalstar to more than double its annual revenue post-launch of the expanded services.
Paolo Pescatore, analyst at PP Foresight said: “Satellite is literally the next frontier as all scramble to provide users with robust and reliable connectivity.
“Apple is slowly but surely showing its hand with this latest move underlining the importance of satellite. Furthermore, it is a strong endorsement of Globalstar’s capabilities.”
The expanded satellite capabilities are set to extend beyond basic emergency messaging, with Apple reportedly aiming to support data services and, potentially, voice and video calling.
Globalstar currently operates 31 L-band satellites, with 26 more in production and 17 scheduled for launch in 2025. Canadian satellite manufacturer MDA is building 17 satellites with options for nine more, and SpaceX is expected to launch them.
Apple’s funding may also support an additional 40 to 80 satellites, depending on technical complexity.
Globalstar’s stock surged by 31.43% on November 1, closing at $1.38 per share, giving the company a market capitalisation of $2.6 billion.
The expanded constellation will also allow Globalstar to service its legacy business in tracking and monitoring devices, though 85% of capacity remains reserved for Apple.
Apple’s investment arrives amid increasing competition from companies such as SpaceX and AST SpaceMobile, which are also planning low Earth orbit (LEO) constellations to offer direct satellite-based messaging, voice, and data services to mobile users worldwide.
Earlier this year, satellite connectivity was used to mitigate the impact of the Red Sea cable cuts.
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