Apple's smart investment in Globalstar now stands to yield a sizable return, while allowing for a significant expansion in the iPhone's satellite-based connectivity features further down the line, courtesy of the $11.5 billion acquisition deal between Amazon and Globalstar.
Apple will not only recoup its investments in Globalstar and then some, but also benefit from the upcoming expansion in Amazon's Leo-branded constellation of satellites
For the benefit of those who might not be aware, Apple acquired a 20 percent stake in Globalstar back in 2023 for $400 million, while also committing to injecting $1.1 billion in cash-based liquidity to expand the satellite connectivity features for its iPhones.
Apple currently uses Globalstar's satellite connectivity for its 'Emergency SOS' and Roadside Assistance services, which allow users (iPhone 14 and up, as well as Apple Watch Ultra 3) to contact emergency services when outside of cellular and Wi-Fi coverage. Apple's Find My app can leverage satellite-based connectivity to update and share location. The tie-up with Globalstar also enables iPhone users to exchange messages with personal contacts and first responders.
Now, however, 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.
Critically, the deal values Apple's 20 percent stake in Globalstar at $2.3 billion, which corresponds to a gain of 475 percent relative to Apple's original acquisition of the stake for $400 million. This valuation also covers Apple's $1.1 billion cash injection in Globalstar, while leaving plenty of change on the table.
What's more, Amazon and Apple have entered into a separate agreement, whereby the former's Leo constellation of satellites will continue to power enhanced satellite-based connectivity features for the latter's devices. Amazon went on to note:
"With the new Amazon-Apple agreement, Amazon will continue to support iPhone and Apple Watch models currently using Globalstar’s existing and planned upcoming low Earth orbit satellite constellations, being manufactured by MDA Space, and collaborate with Apple on future satellite services using Amazon Leo's expanded satellite network."
According to Amazon, its 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 around the world." Consequently, as this constellation expands, so will the iPhone's satellite-based connectivity features and bandwidth.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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