Apple Chooses Amazon Satellites for iPhone, Years After Rejecting Starlink Offer

Why It Matters

The agreement positions Amazon as a direct competitor to SpaceX’s Starlink in the lucrative mobile‑satellite market and secures Apple’s satellite capabilities without relying on a rival. It also accelerates Amazon’s push into enterprise and consumer connectivity services.

Key Takeaways

• Amazon to spend $11.6 billion acquiring Globalstar
• Apple names Amazon primary satellite provider for iPhone and Watch
• Amazon Leo targets 2028 launch of next‑gen D2D service
• Deal adds Globalstar spectrum and MSS licenses to Amazon portfolio
• Starlink still leads with 10,000 satellites, but competition rises

Pulse Analysis

Amazon’s $11.6 billion purchase of Globalstar marks a decisive step into the direct‑to‑device (D2D) satellite arena, a space previously dominated by SpaceX’s Starlink. By securing Globalstar’s 24‑satellite LEO network and its valuable spectrum holdings, Amazon gains an immediate foothold for emergency messaging on iPhone 14 and later models, as well as the Apple Watch Ultra 3. The partnership also promises a joint development roadmap, allowing Apple to extend satellite features—such as SOS, Find My, and richer messaging—beyond the current limited capabilities.

The competitive dynamics are shifting. Starlink already operates more than 10,000 satellites, with roughly 650 dedicated to D2D services, giving it a scale advantage. Amazon Leo, however, is on track to deploy over 3,000 satellites by the mid‑2020s and aims to launch its next‑generation D2D constellation in 2028. The infusion of Globalstar’s spectrum and Mobile Satellite Service (MSS) licenses enhances Amazon’s technical bandwidth, potentially delivering faster data rates and broader coverage than legacy systems. While Globalstar’s legacy network is modest, its integration accelerates Amazon’s timeline to offer voice, data, and messaging services directly to mobile devices.

Regulatory approval from the FCC will be a critical hurdle, especially amid ongoing disputes between Amazon and SpaceX. Nonetheless, the FCC chair’s openness to a three‑player D2D market suggests a favorable environment for Amazon’s ambitions. Beyond consumer use cases, Amazon is courting enterprise and government customers—Delta, AT&T, Vodafone, and NASA are already on its roster—signaling a revenue stream that could rival traditional satellite broadband. As Apple solidifies its reliance on Amazon for satellite connectivity, the partnership could reshape how mobile users stay connected in remote areas, challenging Starlink’s dominance and expanding the overall satellite ecosystem.