Apple is buying 20 percent of its iPhone satellite services partner

Apple is acquiring a 20 percent stake in GlobalStar, its partner for iPhone satellite services, for $400 million. This investment is part of a broader strategy to enhance satellite connectivity for iPhone users, which includes a prepayment of $1.1 billion aimed at improving GlobalStar's satellite infrastructure. The partnership allows Apple to utilize GlobalStar's satellites for features like emergency text messaging and iMessage reactions in areas lacking cellular service. GlobalStar announced the deal's details in an SEC filing, which outlines plans for a new satellite constellation, expanded ground infrastructure, and increased licensing for mobile satellite services. Since the launch of the Emergency SOS feature on the iPhone 14 in 2022, Apple has provided users with free access to satellite messaging services for two years, with an extension granted to iPhone 14 owners that could last until November 2025. Apple plans to eventually charge for this satellite connectivity service, although it has not yet implemented any fees.

- Apple is investing $400 million for a 20% stake in GlobalStar.

- The deal includes a $1.1 billion prepayment to enhance satellite infrastructure.

- Apple uses GlobalStar's satellites for emergency messaging features on iPhones.

- Free satellite service for iPhone 14 users has been extended to November 2025.

- Apple plans to introduce charges for satellite connectivity in the future.