Amazon, Apple Team Up to Revolutionize Satellite Connectivity

Amazon has made a deal to buy Globalstar's low-Earth orbit satellite network for $11.57 billion, snapping up its spectrum licenses, operations, and assets to combine with its upcoming Leo internet satellite constellation. Apple owned 20 percent of Globalstar, and as a part of the deal, Amazon will continue to support satellite services like Emergency SOS for iPhones and Apple Watches, and develop future services that connect them to its Leo satellite network. The deal is currently scheduled to close in 2027, pending approval by regulators.

Globalstar currently provides direct-to-device services like Emergency SOS to the iPhone and Apple Watch, a feature that has been crucial for users in remote areas or during emergencies. With this acquisition, Amazon aims to expand and enhance these capabilities by integrating Globalstar's infrastructure into its own Leo satellite network. This strategic move will challenge Starlink's ambitions in the smartphone satellite connectivity market, as Amazon and Apple combine their technological prowess and customer bases.

The deal is a win-win for both Amazon and Apple. Amazon gains access to Globalstar's existing satellite network and expertise, accelerating the development of its Leo constellation. Apple, on the other hand, secures the continued support and expansion of its Emergency SOS feature, ensuring its users have access to reliable satellite-powered emergency services, even in the most remote locations.

The partnership between Amazon and Apple also presents an opportunity for further collaboration in the satellite connectivity space. The two tech giants may develop new services that leverage the combined capabilities of their respective platforms, such as seamless integration between iPhone and Apple Watch and the Leo network, or the introduction of satellite-powered features for productivity, entertainment, or communication.

The acquisition of Globalstar by Amazon and its continued partnership with Apple represent a significant shift in the satellite connectivity landscape. By combining their resources and expertise, the two companies are poised to challenge the dominance of Starlink and offer a compelling alternative for consumers and businesses seeking reliable, high-performance satellite-based services.