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Will Apple and SpaceX return to the negotiating table? This could mean the end of satellite communication services like GlobalStar.

Will Apple and SpaceX return to the negotiating table? This could mean the end of satellite communication services like GlobalStar.

2026-01-15 13:35:00 · · #1


① SpaceX may provide Apple with iPhone provides satellite communication services Its Starlink division is working on compatibility with the radio spectrum used by the iPhone's existing satellite functions; ② The iPhone's existing radio spectrum is provided by GlobalStar. The latter offers a solution, but its network suffers from slow speeds and outdated technology; ③ Starlink is expected to complete the deployment of its next-generation satellite network in the coming years, and Apple has become a potential customer.

According to reports, SpaceX may provide satellite communication services for Apple 's iPhone. To advance its collaboration with Apple, SpaceX's Starlink division is incorporating the radio spectrum used by the iPhone for existing satellite functions into its new satellite designs.

SpaceX's Starlink is expected to complete the deployment of its next-generation satellite network in the coming years, and Apple has become a potential customer.

Currently, the radio spectrum used by Apple's existing satellite functions for iPhones is provided by Globalstar , but over time, Globalstar 's network has become slow and outdated.

This means that although Apple's relationship with Musk's companies has not always been harmonious, Apple has a strong incentive to repair its relationship with Musk.

History of grudges

Before Apple launched its first satellite feature in 2022, Musk proposed to Apple that SpaceX become the exclusive satellite service provider for iPhones for 18 months.

He proposed that Apple pay $5 billion upfront, followed by $1 billion annually after the exclusivity period ended. Apple rejected this offer.

In addition, Musk has publicly criticized Apple for the financial impact of its App Store fees on his social network X.

Last August, Musk's artificial intelligence Startup xAI sues Apple for manipulating App Store rankings, damaging its Grok chatbot . And it favors OpenAI's ChatGPT.

However, a potential collaboration concerning Apple's satellite communications service has eased tensions between the two sides. As previously reported, some Apple executives had long been skeptical of the GlobalStar partnership, believing Apple should instead partner with SpaceX.

Global Star may become a thing of the past.

GlobalStar is a telecommunications company whose revenue comes from providing mobile satellite services. These services are typically used in areas where terrestrial wired and wireless communications are obstructed or nonexistent. The company provides two-way voice and data transmission, as well as one-way data transmission, using mobile or fixed equipment.

However, Globalstar recently warned that losing Apple as a customer would result in a significant financial impact.

Amid this news, Global Star Chairman James Monroe is discussing the possibility of selling the company for a valuation exceeding $10 billion. Boosted by this news, Global Star's stock price closed up nearly 5% on Thursday (October 23).

Although Apple has the right of first refusal if Globalstar seeks a buyer, the likelihood of the company acquiring it is extremely low. Reports indicate that Apple has no intention of acquiring Globalstar, primarily to avoid becoming a regulated telecommunications operator itself.

Analysts interviewed stated that Musk now has control over EchoStar Communications. With limited spectrum resources, it is becoming increasingly difficult for companies like Apple to conduct business without SpaceX's involvement.

Tim Farrar, president of satellite consulting firm TMF Associates, said, "If Apple gives up competing with SpaceX, Starlink will have virtually no rivals in the market, which will solidify Starlink's dominance."

(Article source: CLS)

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