In a move that signals Apple's growing interest in satellite technology, the tech giant has announced a significant investment in Globalstar Inc., a leading satellite services provider. The news sent Globalstar's stock skyrocketing, with shares closing up over 31% following the announcement.
The deal, valued at $1.1 billion, builds upon an existing partnership between the two companies. As part of the agreement, Apple will acquire a 20% equity stake in Globalstar for $400 million, with the transaction expected to finalize on November 5.
This latest investment expands on Apple's previous $450 million commitment made in 2022, which primarily supported the development of Globalstar's infrastructure for Apple's Emergency SOS feature. The feature, first introduced with iPhone 14 models, allows users to send emergency messages via satellite when traditional cellular or WiFi networks are unavailable.
The expanded partnership aims to further develop satellite capabilities, including the creation of a new satellite constellation and additional ground infrastructure. This move aligns with Apple's recent introduction of non-emergency satellite messaging in iOS 18, launched in September. The new feature enables iPhone users to send and receive text messages, emojis, and tap-backs via satellite, all with end-to-end encryption.
While the Emergency SOS service is currently offered free of charge, with Apple extending its complimentary period for another year, industry observers speculate that the non-emergency messaging feature may eventually come with a price tag as Apple looks to grow its services business.
The collaboration between Apple and Globalstar highlights the increasing importance of satellite technology in mobile communications. As demonstrated during recent natural disasters like Hurricane Helene, satellite-based messaging can provide a critical lifeline when traditional communication networks fail.
As Apple continues to invest in satellite technology, it's clear that the company sees significant potential in expanding its services beyond traditional cellular networks. This partnership with Globalstar could pave the way for more innovative satellite-based features in future Apple devices, potentially revolutionizing how we stay connected in remote or emergency situations.