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Apple and Amazon Ink Satellite Deal in Wake of Amazon’s Globalstar Grab

Apple and Amazon Ink Satellite Deal in Wake of Amazon’s Globalstar Grab

We reported in early April that Amazon would be grabbing up satellite operator Globalstar in a deal said at the time to be worth $9 billion. The deal raised a few questions as to how Apple would be affected. Why would it affect the Cupertino firm? Apple uses Globalstar’s satellite network to power several features for its iPhone and Apple Watch devices.

Those fears can now be put to rest, as Apple and Google have inked a deal that will provide Apple continuing access to the Globalstar satellite network.

Amazon and Globalstar today announced they had finalized a deal for the retail giant acquiring the satellite operator. Amazon will use the company’s  satellites, radio frequency spectrum, and operational expertise to expand its Amazon Leo satellite network to provide Direct-to-Device (D2D) services.

In the announcement, Amazon also said that they had entered an agreement with Apple that will see Amazon’s Leo network powering satellite services for Apple’s supported iPhone and Apple Watch models. This will allow users continued access to several satellite-powered features, such as Find My, Messages via satellite, Emergency SOS, Roadside Assistance via satellite, and more.

Amazon also said it will partner with Apple to develop additional satellite services that will run on the expanding Leo network.

Amazon’s purchase of Globalstar is expected to close in 2027, and as usual, the deal is subject to regulatory approval.

Apple paid $1.5 billion for a 20% share of Globalstar in 2024, meaning they likely had some say in the acquisition talks. Apple’s investment in Globalstar consisted of up to $1.1 billion to finance the construction and launch of Globalstar’s satellite infrastructure. Apple had also spent $400 million to purchase a 20% passive equity interest in Globalstar. Apple currently has access to 85% of Globalstar’s satellite network bandwidth.

Apple is also reported to be working on several new satellite-related features for its devices, including satellite over 5G, Apple Maps over satellite, sending photos in Messages while connected over Satellite, a satellite API for third-party applications, and other features.