Amazon Merges with Globalstar for iPhone Satellite Service

In a major move to accelerate its position in the satellite connectivity race, Amazon has unveiled two significant partnerships. The company has agreed to acquire satellite operator Globalstar and has secured a pivotal agreement with Apple to become the primary satellite service provider for iPhone and Apple Watch features. This dual announcement represents a substantial push by Amazon to expand its Amazon Leo satellite network and directly challenge competitors like SpaceX’s Starlink.

The acquisition of Globalstar, valued at approximately $11.57 billion, provides Amazon with immediate entry into the growing Direct-to-Device (D2D) market. This technology enables satellites to connect directly with standard mobile phones, bypassing traditional cellular infrastructure. Globalstar already powers existing satellite services on Apple devices, including the iPhone 14 and later models and the Apple Watch Ultra 3. These features allow users to send emergency messages, contact roadside assistance, and share their location when outside cellular coverage.

Under the new agreement with Apple, Amazon will support these current capabilities while collaborating on future services. Panos Panay, Amazon’s senior vice president of devices and services, confirmed the company will serve as the primary satellite service provider for iPhone and Apple Watch. This builds on an existing relationship where Apple utilizes Amazon’s cloud infrastructure. Greg Joswiak, Apple’s senior vice president of worldwide product marketing, emphasized the continuity for users, stating the collaboration ensures access to vital tools like Emergency SOS and Find My via satellite.

For Globalstar shareholders, the deal offers a choice between $90 per share in cash or an equivalent value in Amazon stock. This transaction follows reported discussions last year between Globalstar and SpaceX regarding a potential sale. Amazon’s strategic purchase not only acquires an operational network but also secures a key partnership that instantly connects its satellite ambitions to hundreds of millions of Apple devices.

Looking ahead, Amazon is targeting a 2028 launch for its broader mobile connectivity services. The expanded Amazon Leo network, formerly known as Kuiper Systems, aims to provide the backbone for these future offerings. This series of moves signals Amazon’s commitment to becoming an end-to-end connectivity provider, from satellite infrastructure to direct consumer services on some of the world’s most popular devices.