Amazon is set to assume Apple’s significant ownership position in satellite provider Globalstar, as part of its massive $11.6 billion acquisition of the company. The move, detailed in a new Federal Communications Commission (FCC) filing, underscores Amazon’s aggressive push into the satellite-to-phone market while maintaining support for Apple’s existing Emergency SOS via satellite feature.
Key Details of the Deal
• Apple’s Stake Transfer: Amazon’s newly created subsidiary, “Grapefruit Acquisition Sub II,” will take over Apple’s full 20% equity and voting interests in Globalstar. Apple originally secured this position in 2024 through a $1 billion investment, paying approximately $400 million for 400,000 Class B shares to support its satellite services.
• Commitment to Apple Users: Despite losing its ownership stake, Apple’s iPhone and Apple Watch users should see continued — and potentially improved — satellite connectivity. Amazon explicitly stated it remains committed to powering and enhancing services like Emergency SOS, which has already saved lives in remote areas without cellular coverage.
Amazon’s Broader Ambitions
Amazon plans to leverage Globalstar to compete directly with SpaceX’s Starlink Mobile and AST SpaceMobile in the emerging direct-to-device (D2D) satellite market. The company aims to expand beyond Apple-exclusive features to support smartphones and mobile devices across multiple carriers and vendors.
In the FCC filing, Amazon highlighted plans for major upgrades:
• Continuing Globalstar’s C-3 48-satellite constellation.
• Deploying a next-generation “Amazon Leo” D2D satellite constellation.
• Introducing robust voice calls, text, and data services that work with standard 3GPP NTN-compatible phones — no specialized hardware required.
• Improved coverage that penetrates buildings, foliage, and adverse weather better than current systems.
Amazon also mentioned developing specialty phased-array antenna technology optimized for these services in relevant frequency bands.
The deal still requires FCC approval. No timeline has been announced for the full rollout of enhanced services or pricing details.
MacDailyNews Take: This development comes as satellite connectivity evolves rapidly. Apple’s current implementation (powered by Globalstar) provides critical emergency messaging, but has limitations compared to newer SpaceX offerings promising broader data capabilities and higher speeds. Amazon’s investment and technical roadmap could accelerate improvements for iPhone users, potentially bringing voice and expanded data features to future devices.
This acquisition positions Amazon as a major player in the race to eliminate cellular dead zones, while ensuring Apple’s satellite partnership remains intact and potentially stronger under new ownership. It will be interesting to watch how this affects the competitive landscape for Apple device satellite features in the coming years.
Please help support MacDailyNews — and enjoy subscriber-only articles, comments, chat, and more — by subscribing to our Substack: macdailynews.substack.com. Thank you!
Support MacDailyNews at no extra cost to you by using this link to shop at Amazon.
