Globalstar shares crashed as much as 32% after a Bloomberg report revealed that Apple has been working with SpaceX and T-Mobile to integrate Starlink satellite connectivity into the latest iPhone software. The report cited sources familiar with the matter.
Goldman's Sean Johnstone weighed in on the Bloomberg report, noting that Globalstar's exclusive iPhone satellite service is coming to an end as competition heats up with Apple's new offering of SpaceX's Starlink:
Bloomberg reporting that Apple has been secretly working with SpaceX and TMUS. to add support for the Starlink network in its latest iPhone software, providing an alternative to the company's in-house satellite-communication service. The tie-up comes as a surprise: T-Mobile has previously only specified Starlink as an option for Samsung. phones, such as the Z Fold and S24 models. Apple, meanwhile, already provides a Globalstar Inc. offering that lets consumers send texts and contact emergency responders when out of cellular range.
Musk confirmed the report on X, indicating "Medium resolution images, music & audio podcasts should work with the current generation Starlink direct-to-phone constellation. Next generation constellation will do medium resolution video."
The Starlink deal with Apple now increases competition from Apple's previous Globalstar offering. This sent shares of GSAT crashing the most in eight years, according to Bloomberg data.
Other market gyrations stemming from the Bloomberg report:
- Shares of AST SpaceMobile, which is a competitor to Starlink, drop as much as 11%
- Shares of MDA Space, a partner with Globalstar on low Earth orbit satellites, are also down as much as 25% in a record intraday decline
When does SpaceX launch its own carrier? Also, when does Starlink IPO?