Apple has announced a significant investment of up to $1.5 billion in satellite communications provider Globalstar, marking a major expansion of its iPhone satellite services capability.

The deal, expected to close on Tuesday, comprises $1.1 billion in cash funding and a 20 per cent equity stake worth $400 million in Globalstar. A portion of the cash investment, approximately $232 million, will be used to pay down Globalstar's existing debt.

The investment builds upon the partnership established in 2022, which enabled iPhone users to send emergency messages from remote areas through Globalstar's satellite network. Under the expanded agreement, Globalstar will continue to allocate 85 per cent of its network capacity to Apple.

The satellite provider plans to use the funding to launch new satellites and expand its ground infrastructure, enhancing its "mobile satellite services" network. Globalstar currently operates 31 satellites and has ordered up to 26 more to upgrade its constellation in low Earth orbit.

The move comes as competition intensifies in the satellite communications sector. Google recently partnered with Skylo to offer emergency satellite messaging for its Pixel 9 series, while mobile carriers are exploring similar capabilities. T-Mobile, in partnership with SpaceX's Starlink, recently provided emergency satellite texting during hurricanes Helene and Milton.

The announcement had a significant impact on Globalstar's stock, which surged more than 30 per cent following the news, while Apple's shares declined by around 1.4 per cent amid forecasts of modest quarterly revenue growth.

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