The Power of Apple: How They Dominate the Market

Reports suggest that Amazon is in negotiations to acquire Globalstar for an estimated value of $9 billion, as reported by the Financial Times.

What makes this news Apple-related? Well, Globalstar is the company responsible for the satellite features on Apple devices such as the iPhone and Apple Watch. In 2024, Apple acquired a 20% stake in Globalstar for $1.5 billion, complicating the current acquisition talks.

You might wonder why Amazon is interested in a satellite communications firm. The reason behind this interest is Amazon’s aim to compete with SpaceX’s Starlink by developing its own satellite internet service called Amazon Leo, previously known as Project Kuiper.

But why isn’t Apple seizing the opportunity to own a satellite company? While it may seem advantageous for Apple to control its satellite-based services, the company is likely reluctant to take on the responsibilities and resources that come with owning a satellite firm.

Apple’s investment in Globalstar included financing satellite construction and launch costs, as well as acquiring a 20% equity interest in the company. This investment grants Apple access to 85% of Globalstar’s satellite network capacity for its current features like Emergency SOS via satellite and Messages via satellite.

Apple is reportedly developing new satellite-related features for its devices, which may require upgrades to Globalstar’s infrastructure. These features could include satellite over 5G, satellite weather, Apple Maps via satellite, and more.

Meanwhile, Amazon is also expanding its satellite infrastructure through its Leo program, with over 180 satellites in orbit. However, this pales in comparison to SpaceX’s fleet of over 10,000 active satellites.

If Amazon acquires Globalstar, it could benefit Apple as the tech giant already relies on Amazon for cloud storage. Additionally, Amazon’s investment in satellite infrastructure could be advantageous for Apple, provided it maintains its access.