Amazon acquires Apple’s satellite partner ↦

Amazon:

Today Amazon.com, Inc. and Globalstar, Inc. announced that they have entered into a definitive merger agreement under which Amazon will acquire Globalstar, enabling Amazon Leo to add direct-to-device (D2D) services to its low Earth orbit satellite network and extend cellular coverage to customers beyond the reach of terrestrial networks. In addition, Amazon and Apple announced an agreement for Amazon Leo to power satellite services for iPhone and Apple Watch, including Emergency SOS via satellite.

This deal had been recently rumored. Amazon acquiring Globalstar gives it a leg up in its attempt to take on Starlink, which is the biggest player in this space. But Apple previously sank a billion-dollar-plus investment into Globalstar, whose system underpins its satellite features.

That stake seems to have bought Apple some assurances, including support for not only current but future devices. The ongoing question for Apple’s satellite features is whether users will ever end up paying for them, something that the company has been happy to continually kick down the road. It’s possible the deal is structured in such a way that Apple doesn’t have to pass on the cost to its users, at least for some period of time, but we’ll see what happens this year when the latest round of iPhones comes out.

As for Apple getting in bed with one of its competitors, Amazon is hardly the only other major tech company that Apple now has a close tie to: we know it’s using Google’s Gemini for its forthcoming AI models and, of course, it’s long depended on components made by Samsung. As tech companies get larger and larger, it’s harder and harder for them not to be collaborators.

Go to the linked site.

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