Apple puts $1.5bn into Globalstar
November 4, 2024
By Chris Forrester
Globalstar is the satellite operator supplying emergency SOS and Text messages for Apple’s iPhones. Apple says it wants to expand the service and will invest $1.1 billion (€1.01bn) and an equity stake to fund more satellites for Globalstar.
Currently owners of recent iPhones (14, 15 and 16 versions) can access Globalstar’s satellites for emergency service when they are out of range of their own cellular networks. Apple will take a 20 per cent stake in Globalstar and is buying 400,000 Class B shares for $400 million. $232 million of this will go to pay down existing debt. Apple’s total investment could reach $1.75 billion.
Globalstar, in its SEC filing on October 29th, says that it will continue to allocate 85 per cent of its network capacity to Apple. The new cash will be used to purchase new satellites and expand Globalstar’s ground infrastructure. Apple has been reported to want to considerably expand its satellite offerings and use Globalstar to bypass terrestrial networks.
The satellite operator already has 31 satellites in orbit and another 26 being built. The new cash could help fund 40 to 80 extra satellites depending in complexity. It is reported – but not confirmed – that Canada-based satellite builder MDA is constructing at least 36 extra satellites for Globalstar. MDA is confirmed as the builder of the 17 satellites (plus 9 spares) which are due for launch in 2025.
Apple’s goal is to move the system beyond emergency and simple Text messaging and to handle data and ultimately voice calls and perhaps video chat.
Globalstar forecasts that its total annual revenue will more than double compared to 2024 annualised levels during the first full year following the launch of the expanded satellite services.
Globalstar SOS connectivity has expanded to Japan, New Zealand and Australia as well as existing North America and European access. Currently the service is free, although 2025 could see charges imposed.
Globalstar’s stock price (on the New York exchange) rose by 40 per cent at one point on November 1st, finishing the day 31.43 per cent up (and a further rise of 7.25 per cent in after-hours trading). The price rise gives the company a market capitalisation of $2.6 billion.