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Amazon is acquiring satellite operator Globalstar for $11.57 billion. Apple, which previously held a 20 percent stake in Globalstar, will in future obtain its satellite services for iPhone and Apple Watch via Amazon's Leo network.
Apple's satellite features – from emergency SOS and satellite messaging to roadside assistance – have relied on Globalstar's network since the iPhone 14. This is now fundamentally changing: Amazon today announced its acquisition of Globalstar and simultaneously revealed an agreement with Apple under which Amazon Leo will provide the satellite infrastructure for iPhone and Apple Watch. For Apple users, nothing should change in the short term – in the long term, the deal promises faster innovation and broader coverage.
The acquisition is not entirely unexpected. Reports of negotiations between Amazon and Globalstar surfaced in early April. Apple's 20 percent stake in Globalstar was considered a complicating factor at the time, necessitating three-party negotiations. These negotiations appear to have been successful: Amazon is paying $11.57 billion for the acquisition and has simultaneously concluded the agreement with Apple.
What's changing for Apple users
In the short term: nothing. Amazon will continue to operate the existing and planned Globalstar satellite constellations for current iPhone and Apple Watch models. Emergency SOS via satellite, satellite messaging, "Find My" location sharing, and roadside assistance will function as usual.
In the long term, however, the switch to Amazon Leo should bring noticeable improvements. Amazon promises that by combining its own LEO (Low Earth Orbit) satellite network with Globalstar's infrastructure and frequency licenses, it will enable faster deployment of direct-to-device connectivity. This could mean better coverage in remote areas, higher data rates, and more reliable connections.
Why Apple benefits from the deal
Apple had reached capacity limits with Globalstar in recent years. Reports indicated that Apple had even considered switching to Elon Musk's Starlink to meet the growing demand for satellite services. With Amazon Leo, Apple now gains access to a significantly larger and more modern satellite network – without having to rely on SpaceX.
Apple's marketing chief, Greg Joswiak, highlighted the successes of the satellite capabilities in a statement: from a Boy Scout troop rescued on a winter hike in British Columbia to a woman airlifted by helicopter after an accident on a 75-meter cliff in Colorado. Joswiak described the long-standing collaboration between Apple and Amazon as proven and emphasized their excitement about the expanded cooperation through Amazon Leo.
The strategic dimension
The deal has implications beyond Apple. With the acquisition, Amazon is massively expanding its position in the satellite communications market and entering into direct competition with SpaceX and Starlink. For Apple, the partnership means that a financially powerful technology company will operate and further develop the satellite infrastructure – instead of a specialized but financially limited company like Globalstar.
Whether the acquisition will also lead to Amazon Leo using its direct-to-device technology for its own products—such as Alexa-enabled devices or Fire Phones—remains to be seen. For Apple users, the immediate concern is that satellite services will remain available and are expected to improve in the medium term. (Image: Amazon)
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