Business Desk 
Nov 02, 2024
In a regulatory filing on Friday, Globalstar revealed that Apple has committed to investing up to $1.5 billion in the new satellite constellation to help finance Globalstar's operations.
However, this is not the first time Apple has invested in Globalstar to support its Emergency SOS service on iOS devices in areas with limited network access, as the company previously invested $450 million in Globalstar in 2022.
This new deal will enable Globalstar to deliver enhanced and expanded services to Apple via the latest Mobile Satellite Services (MSS) network. This includes the new satellite constellation, expanded ground infrastructure, and increased global MSS licensing.
Read more: Apple surpasses Wall Street expectations in Q4 2024 — Record revenue and strong iPhone sales
Shares of the satellite provider surged by over 30%, while Apple’s shares dropped by around 1.4% following its moderate quarterly revenue growth.
As part of the financial arrangement, the Cupertino-based tech giant will prepay $1.1 billion in cash for future services and spend roughly 20% of its investment on a $400 million stock purchase in Globalstar.
This strategic move aims to expand cellular services for Apple users and offer satellite-based connectivity to customers in regions with little or no network access.
Globalstar further stated that it will allocate about 85% of its network capacity to Apple, with the deal set to conclude on November 5.
