Amazon’s (AMZN) acquisition of Globalstar (GSAT) could ultimately benefit one of its biggest hardware rivals—Apple (AAPL).
The $11.6 billion deal, announced on Tuesday, will provide Amazon with a satellite network, accelerating its push to deliver internet services directly to devices. The e-commerce giant has also committed to using its low-Earth orbit (Leo) satellite system to support Apple’s emergency messaging service, filling the role currently held by Globalstar. If the transaction goes through, Apple will gain a well-funded and ambitious partner in satellite communications, helping the iPhone maker expand its services in an increasingly important market.
Apple has made an unusual move for a major tech deal, issuing a public statement in support, noting its “strong track record of working together” with Amazon on infrastructure services. Greg Joswiak, Apple’s marketing chief, said in the statement: “We look forward to deepening that partnership as Amazon’s Leo constellation expands. This will ensure that our users can continue to access the critical satellite features they already rely on.”
Apple has been building out satellite capabilities for years, but it remains in catch-up mode relative to others in the industry. In 2022, Apple launched a series of satellite-based services, now enabling functions such as sending off-grid text messages and summoning emergency help without cellular coverage. To do this, Apple partnered with Globalstar, a 35-year-old low-Earth orbit satellite operator, and has since invested in the company, holding about 20% of its shares.
Although Apple was an early mover in consumer-facing satellite services, the industry landscape is changing rapidly. SpaceX has already taken the lead in satellite-based internet services, with technology far beyond what Globalstar can offer. SpaceX has also partnered with T-Mobile US Inc. (TMUS) to make it easier for devices like iPhones to connect to its network. Other major carriers, including AT&T Inc. (T) and Verizon Communications Inc. (VZ), have launched their own satellite services.
This presents a major question for Apple internally: What is the point of operating its own satellite network when better options—ones requiring little effort from the company to maintain—are constantly emerging? Amazon, with its vast resources and ambition to turn its Leo satellite service into a primary rival to SpaceX’s Starlink, is changing the equation. Now, instead of continuing to fund Globalstar, Apple can tap into an expanding satellite constellation.
For now, both tech giants are moving aggressively. Amazon plans to launch its direct-to-device satellite network in 2028, offering high-speed global connectivity. Apple is also preparing new satellite features, including satellite-based mapping, photo messaging, and the ability for third-party apps to access its satellite network. One open question is whether Apple will continue to offer the service for free—a decision that will depend on how much Amazon ultimately charges Apple for Leo access.
