- Positions Apple as a front-runner among western OEMs in providing advanced satellite texting and calling services.
- Apple’s collaboration with Globalstar diminishes the impetus for mobile network operators to independently pursue partnerships with satellite service providers.
The strategic investment of $1.5 billion by Apple in Globalstar stands out as one of the most consequential in the arena of low Earth orbit (LEO) satellite communications, positioning Apple as a front-runner among western OEMs in providing advanced satellite texting and calling services, an industry expert said.
“The prospective deal packs a competitive punch for virtually all corners of the connectivity market ecosystem, from carriers to OEMs,” Emma Mohr-McClune, Chief Analyst at GlobalData, said.
The iPhone maker plans to invest $1.1 billion in satellite communications company Globalstar alongside a further $400 million for a 20 per cent equity stake in the business.
“The strategic nature of this investment is underscored by Globalstar’s commitment to allocate 85 per cent of its network capacity to Apple. The infusion will facilitate the development of a new satellite service constellation and enhance ground infrastructure, thereby improving global mobile satellite services (MSS),” Mohr-McClune said.
Moreover, she said that the arrangement builds on a previous partnership established in 2022, which granted iPhone 14 users access to emergency text services via Globalstar’s L-band satellites.
“The evolution of this service to cater to remote and off-grid scenarios with the introduction of iOS 18 signifies a progressive shift towards more inclusive and reliable communication methods.”
Connectivity offerings
Moreover, Apple’s collaboration with Globalstar diminishes the impetus for mobile network operators to independently pursue partnerships with satellite service providers.
As a consequence, she said that users of Apple devices are poised to benefit from enhanced access to sophisticated direct-to-device (D2D) services, independent of their current wireless providers.
The paradigm shift reinforces Apple’s commitment to diversifying its connectivity offerings; she said and signaled a strategic pivot away from previous perceptions of the company’s indifference towards the connectivity sector.
However, she said that “challenges remain”.
“The specific consumer monetisation strategies tied to this investment remain unclear, and it is expected that premium service offerings will take time to materialise. For the immediate future, Apple is likely to continue providing complimentary satellite communication services to iPhone users, particularly those who adopted the iPhone 14, as part of an extended two-year inclusive offer.”