Apple’s recent partnership with Globalstar to enable iPhone users to access its satellite services has sent shockwaves through the satellite industry, with shares in rival companies plummeting.
On January 29, Globalstar’s stock closed nearly 18% down after Apple announced its ability to join beta tests for SpaceX’s Starlink service in the United States. This move was made possible by a recent software update that added T-Mobile cellular support to the iPhone.
Shares in AST SpaceMobile, which provides similar satellite connectivity via a partnership with Apple, dropped 12%. Canada-based MDA, a key player in Globalstar’s satellite constellation project, also saw its shares fall more than 9%.
Analysts suggest that Apple views its partnership with Globalstar as complementary, rather than a replacement for the rival Starlink service. The companies have binding contracts that extend into the next decade, ensuring a steady revenue stream.
The competition between Starlink and other satellite services is set to intensify, with SpaceX facing regulatory hurdles to expand its services. Meanwhile, AST SpaceMobile has already secured an FCC approval for its technology, setting it up as a potential challenger in the market.
As the satellite industry continues to evolve, one thing is clear: Apple’s entry into this space will have significant implications for rival companies and investors alike.
Source: https://spacenews.com/iphone-starlink-compatibility-sends-direct-to-smartphone-stocks-sliding