APPLE

Apple expands iPhone satellite service deal, spends $1.1B to expand capacity

Satellite services provider GlobalStar today announced an expansion of its deal with Apple. Apple will provide an additional $1.1 billion in upfront infrastructure payments to increase the capacity of its satellite services. Additionally, Apple will receive a 20% stake in GlobalStar as part of an equity deal worth about $400 million.

The news sent GlobalStar shares soaring and hints at Apple’s growing plans for iPhone satellite features. With iOS 18, for example, iPhone users can now text friends and family via satellite when they’re outside of cellular or Wi-Fi coverage.

Apple continues to devote significant financial resources to providing satellite functionality, offering the feature for free to end users. However, the company has repeatedly indicated that it intends to charge iPhone users at some point.

Satellite connectivity for Emergency SOS first launched with the iPhone 14 in 2022. At the time, Apple said that satellite connectivity would be free for two years. This means that customers would have had to start paying around now, in late 2024. However, Apple has extended the free period until 2025.

Apple has not yet confirmed how much it intends to charge for satellite functionality. It's a touchy subject, as much of the current offering relies on satellite use during life-threatening emergencies, which seems rather punitive for Apple to charge for it. It’s possible the company will continue to offer Emergency SOS for free while charging for other features, like the ability to share your location in Find My or iOS 18’s new ability to send text messages via satellite for entertainment purposes. Others have speculated that the satellite service could be included in the Apple One package or offered through carrier add-ons.

Satellite connectivity is supported on iPhone 14 and later models. Satellite connectivity is typically only enabled outside of cellular or Wi-Fi coverage. However, you can try out the satellite demo on your phone right now by going to Settings -> Emergency SOS -> Emergency SOS via Satellite -> Try Demo.

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