Apple to Bolster iPhone Satellite Services With $1 Billion Investment
The funding will go to company partner Globalstar, which plans on building a new satellite constellation to power Apple services.
Apple will spend up to $1.1 billion to expand satellite connectivity on iPhones.
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The news comes from Globalstar, a satellite communications provider that powers the Emergency SOS feature on newer iPhone models. Apple previously paid over $330 million to help Globalstar support satellite services for its iPhones. In a Friday filing with the Securities and Exchange Commission, Globalstar says the extra funding will "deliver expanded services to [Apple] over a new mobile satellite services (‘MSS’) network, including a new satellite constellation, expanded ground infrastructure, and increased global MSS licensing.”
Globalstar has committed to allocating 85% of its satellite network capacity to Apple, and Apple has agreed to buy 400,000 Class B shares in the satellite provider for a 20% stake.
The investment signals that Apple wants to offer even more satellite services to iPhone owners. Others, like SpaceX and AST SpaceMobile, are building satellite networks to bring space-based SMS messaging, voice calling, and internet browsing to consumer smartphones.
The companies have been developing satellite services so users can receive a signal even in a cellular dead zone. In Apple’s case, the Emergency SOS feature has already proven it can help save lives during a disaster or when the user is located in a remote area. In June, Apple announced expanded satellite connectivity to let users send texts via iMessage with iOS 18.
It's not clear how Apple envisions using the new satellite constellation. However, according to the filing, Globalstar expects its own total annual revenue to “more than double” after the launch of the expanded satellite services, an indication of the project’s scope. Emergency SOS is currently free for two years on the iPhone 14 and up; Apple hasn't said how much it will cost in the future.