Apple Secures Satellite Future with Amazon, Sidestepping SpaceX

In a strategic move that reshapes the satellite connectivity field, Amazon has unveiled a dual-part agreement with Apple while moving to acquire satellite operator Globalstar. The deal positions Amazon's Project Kuiper network as the core satellite provider for Apple's emergency and messaging services on iPhones and Apple Watches.

Amazon will purchase Globalstar for an estimated $11.6 billion, gaining immediate entry into the direct-to-device market. Globalstar already provides the backbone for satellite features on recent iPhone and Apple Watch models. According to Amazon, this acquisition will accelerate the expansion of those services.

Panos Panay, Amazon's senior vice president of devices and services, stated the company will become the "primary satellite service provider for iPhone and Apple Watch." Existing functions like emergency texting and location sharing on iPhone 14 and later models will continue, with both companies planning new features leveraging Amazon's growing satellite constellation.

The financial terms offer Globalstar shareholders a choice between cash or Amazon stock, valuing the transaction between $10.8 and $11.6 billion. This agreement follows reports that Globalstar entertained a potential sale to SpaceX last year, indicating Apple has placed a long-term bet on Amazon's orbital infrastructure instead.

Source: Ars Technica