Apple’s smart investment in Globalstar is now capable of generating sizable profits, while enabling significant expansion of the iPhone’s satellite-based connectivity features, thanks to an $11.5 billion acquisition deal between Amazon and Globalstar.
Not only will Apple recoup its investment in Globalstar and several other investments, but it will also benefit from upcoming expansion in Amazon’s Leo-branded satellite constellation.
For those who may not be aware, Apple acquired a 20 percent stake in Globalstar in 2023 for $400 million, and also committed to injecting $1.1 billion in cash-based liquidity to expand satellite connectivity features on its iPhones.
Apple currently uses Globalstar satellite connectivity for its ‘Emergency SOS’ and Roadside Assistance services, which allow users (iPhone 14 and later and Apple Watch Ultra 3) to contact emergency services when outside cellular and Wi-Fi coverage. Apple’s Find My app can leverage satellite-based connectivity to update and share location. The collaboration with Globalstar also allows iPhone users to exchange messages with personal contacts and first responders.
But now, in line with persistent chatter in recent days, Amazon has agreed to acquire Globalstar for $11.5 billion, subject to approval from the relevant regulatory authorities.
Importantly, the deal values Apple’s 20 percent stake in Globalstar at $2.3 billion, which equates to a gain of 475 percent over Apple’s initial acquisition of the stake for $400 million. The valuation also includes Apple’s $1.1 billion cash injection in Globalstar, leaving it with plenty of change.
Moreover, Amazon and Apple have signed a separate agreement, under which Amazon’s Leo satellite constellation will continue to support enhanced satellite-based connectivity features for Apple devices. Amazon goes on to note:
“With the new Amazon-Apple agreement, Amazon will continue to support current iPhone and Apple Watch models using the existing and future Globalstar low-Earth orbit satellite constellation, manufactured by MDA Space, and collaborate with Apple on future satellite services using the expanded Amazon Leo satellite network.”
According to Amazon, the Leo constellation will eventually span “thousands of advanced satellites in low Earth orbit and have enough capacity to support hundreds of millions of customer endpoints worldwide.” As a result, as this constellation expands, so will the iPhone’s satellite-based connectivity and bandwidth features.
About the author: Writing is one of my undeniable passions. Over the past six years, he has written more than 2,200 different articles on finance and technology-related topics, spanning nearly 1 million words. And he has been a member of Wcctech’s mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, deep knowledge and a unique perspective to every topic I cover. When I’m not writing, I travel the world, exploring hidden gems and restaurants as an aspiring food connoisseur.
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