Amazon.com (NASDAQ: AMZN | AMZN Price Prediction) is reportedly in talks to acquire Globalstar (NASDAQ: GSAT), Apple’s satellite connectivity partner, in a deal valued at roughly $9 billion. For Apple (NASDAQ: AAPL) investors, the implications deserve a close look.
Apple’s Dependence on Globalstar
Apple uses Globalstar for Emergency SOS via Satellite and satellite messaging features across its iPhone lineup. The partnership is deep: Apple holds a 20% stake in Globalstar and has allocated 85% of its network capacity. Globalstar’s wholesale capacity services segment, which represents the Apple partnership, generated $46.29 million in Q1 FY2026, up 28% year-over-year. That revenue line is the financial spine of Globalstar’s business model.
Apple’s Q1 FY2026 results underscore why protecting its satellite infrastructure matters. iPhone revenue hit a record $85.27 billion, up 23.3% year-over-year, and Tim Cook noted “iPhone had its best-ever quarter driven by unprecedented demand.” Satellite connectivity has become a meaningful differentiator for the iPhone, and any disruption to that infrastructure carries product risk.
What Amazon Gains
For Amazon, acquiring Globalstar would hand it Apple’s satellite backbone, globally harmonized spectrum assets, and existing LEO infrastructure at a moment when Amazon is aggressively scaling its own Project Kuiper program. CEO Andy Jassy has committed to approximately $200 billion in capital expenditures across Amazon in 2026, with satellite infrastructure cited as a specific investment area. Amazon’s Project Kuiper has deployed 150+ satellites and demonstrated 1+ Gbps downlink speeds, and Globalstar’s spectrum would accelerate that buildout considerably.
Globalstar shares have responded sharply. The stock is up 260.4% over the past year and has gained 21.0% in the past month, trading at $75 as of April 2.
The Risk for Apple Investors
The core concern is straightforward: Apple’s satellite features could eventually depend on infrastructure controlled by a direct competitor. Contractual protections likely exist given Apple’s 20% ownership stake and 85% capacity allocation, but long-term renewal terms and pricing leverage could shift meaningfully under Amazon ownership.
Rising AI capital expenditure trends across Big Tech, which we covered in today’s Daily Profit newsletter, add another layer of pressure as companies race to control their own infrastructure stacks rather than rely on partners.
Apple’s most credible alternative is AST SpaceMobile (NASDAQ: ASTS), which is building a direct-to-device LEO constellation and reported $54.30 million in Q4 2025 revenue, a 2,731.3% year-over-year increase. AST SpaceMobile holds over $1.20 billion in contracted partner commitments and targets 45 to 60 satellites in orbit by year-end 2026. The company’s technology works with unmodified smartphones, which aligns directly with Apple’s ecosystem requirements.
For long-term Apple investors, the Amazon-Globalstar deal is a competitive risk worth monitoring. Apple’s $3.7 trillion market cap and $53.9 billion in Q1 operating cash flow give it the financial firepower to pursue its own satellite infrastructure or negotiate from strength. Whether it chooses to do so may define the next chapter of iPhone differentiation.
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