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Apple-Globalstar Deal: Expanding Strategic Space Tech Investments |
NEWS |
In November 2024, Apple strengthened its Satellite Communications (SatCom) strategy through a US$1.5 billion investment in Globalstar, acquiring a 20% stake and securing 85% of the network capacity. This deal, consisting of US$400 million in Class B shares and US$1.1 billion in infrastructure prepayments, builds upon previous investments of US$450 million in 2022 and a US$252 million loan in 2023.
Since launching the iPhone 14 in 2022, Apple's satellite services have expanded from basic Emergency SOS and Find My Location features to include Roadside Assistance and off-grid two-way satellite messaging, emojis, and Tapbacks capabilities over iMessage and Short Message Service (SMS) with the iOS 18. Initially covering the United States and Canada, the service footprint has since expanded internationally, now covering multiple countries, including Australia, Austria, Belgium, France, Germany, Ireland, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Portugal, Spain, Switzerland, and the United Kingdom. While initially planned as a 2-year free service, Apple has extended the complementary period until November 2025.
With Apple’s investments, Globalstar will modernize its satellite infrastructure. The company currently operates 31 satellites—24 French-licensed HIBLEO-X and 7 U.S.-licensed HIBLEO-4 satellites. To enhance its constellation, Globalstar contracted Canada's MDA Space to build 17 new satellites for US$327 million, with an option to purchase nine additional satellites at US$11.4 million each. The Federal Communications Commission (FCC) approved the initial deployment, which is scheduled to begin in 2025.
The Far-Reaching Impact of the Apple-Globalstar Alliance |
IMPACT |
Apple's substantial investment in Globalstar, coupled with its involvement in 6G development, suggests a more ambitious long-term vision for SatCom beyond emergency services. The company appears to be positioning itself strategically in several ways:
This strategic positioning indicates that Apple could possibly view SatCom technology not just as a supplementary emergency feature, but rather as a fundamental component of the future mobile communications architecture.
Global Market Projections for NTN D2C |
RECOMMENDATIONS |
Based on ABI Research’s forecasts, the NTN D2C sector is poised for remarkable growth this decade. ABI Research projects that global D2C connections will experience substantial expansion, reaching over 110 million connections by 2030. This transformative market potential reflects the industry's shift toward integrated satellite-cellular communications, promising to bridge connectivity gaps and create new opportunities for service providers and technology companies alike. For more details, please refer to ABI Research’s Satellite Communications: Direct-to-Cellular & NTN Deployments & Subscriptions market data (MD-SATCN-101).
The evolving satellite-to-phone communications landscape presents critical opportunities for various stakeholders to position themselves strategically, ABI Research has three key recommendations: