Apple chooses Amazon satellites for iPhone, years after rejecting Starlink offer
Amazon's $11.6B acquisition of Globalstar secures its position as Apple's primary satellite provider, challenging SpaceX's Starlink.
Amazon has made a massive $11.6 billion move to challenge SpaceX's Starlink in the satellite connectivity race, announcing a merger agreement to buy operator Globalstar and a landmark deal with Apple. This strategic acquisition and partnership position Amazon Leo (formerly Kuiper Systems) as the "primary satellite service provider" for iPhone and Apple Watch, taking over from Globalstar's existing role. The deal ensures continued support for satellite features like Emergency SOS, Messages via satellite, and Find My on iPhone 14 and later models, while paving the way for future, more advanced services on Amazon's expanding network.
The merger, expected to close in 2027, is a direct play for the burgeoning Direct-to-Device (D2D) market, where satellites connect directly to smartphones. Amazon plans to deploy its own next-generation D2D system by 2028, promising faster speeds and better performance than legacy systems. This sets up a head-to-head competition with Starlink, which already has a significant lead with over 10,000 satellites in orbit and an existing D2D partnership with T-Mobile. Amazon's current constellation of 241 satellites is set to grow to over 3,000, while the acquired Globalstar fleet adds 24 existing and 48 planned satellites to its arsenal.
- Amazon acquires Globalstar for ~$11.6B and signs Apple as a key partner, becoming the primary satellite provider for iPhones and Apple Watches.
- The deal supports current iPhone satellite features (Emergency SOS, messaging) and aims for advanced D2D voice/data services launching in 2028.
- This move directly challenges SpaceX's Starlink, which has a massive lead with 10,000+ satellites and a D2D partnership with T-Mobile.
Why It Matters
This consolidates the satellite connectivity market, giving Apple a powerful infrastructure partner and creating a viable competitor to SpaceX's dominance.