Apple has spent billions of dollars to develop satellite connectivity for iPhone; I very much doubt it did so solely to rescue stranded hikers. The company will most certainly have had a bigger prize in its sights when it first began working with GlobalStar (now owned by Amazon).

The most logical reason to invest in satellite coverage for its devices is the most obvious — to provide network infrastructure for new breeds of device and new service models. You don’t acquire access to massive amounts of bandwidth for nothing. And Apple’s steady introduction of new satellite-supported services shows it is interested in introducing these services, even though the offer isn’t extensive enough yet to require iPhone users to pay for access, yet.

The decision not to charge for those satellite services suggests they’re just the thin end of the company’s plans for satellite deployment.

It’s possible the company’s ambitions were limited by GlobalStar’s ability to put satellite constellations in orbit. That work was ongoing last time I looked, and I fully expect existing Apple satellite services will be extended to new nations, even under Amazon’s watch.

Amazon enters the room

Amazon’s recent $11.6 billion acquisition of GlobalStar is interesting. You can see that Apple is now forced to work with its old frenemy, even as both partners already profit from strong, steady Apple hardware sales via the online retailer. So they know they can make money together.

“Apple and Amazon have a long and proven track record of working together through Amazon’s core infrastructure services, and we look forward to building on that collaboration with Amazon Leo,” Greg Joswiak, Apple’s senior vice president of worldwide product marketing, said when the deal was announced. (The transaction isn’t expected to close until next year.)

Making money together is often seen as a strength in business relationships and Amazon has agreed to continue supporting Apple products and to collaborate with Apple on future satellite services.

When it comes to mobile telecoms, Amazon isn’t the only game in town, and neither is Starlink. Cellular operators are inking deals with satellite providers all over the world, all with the intention of bringing network access to those who otherwise can’t get a decent connection.

Just today in the UK, Virgin Media O2 announced plans to switch on the O2 Satellite service for iPhone users tomorrow, enabling customers — particularly in rural areas — to get a satellite connection where traditional cellular coverage is unavailable. It could simply identify new ways to enhance the Find My service.

Orange last year offered its own satellite comms to French customers, while Deutsche Telekom partners with others to provide SMS via satellite in Europe and the US. You’ll find similar alliances in most key territories, including Australia and Japan. The direction of travel exposes an industry embracing satellite as a way to widen existing cellular infrastructure, which makes sense given the relative cost of installing conventional masts in some regions. 

Many ways to crack it

There’s speculation Apple could become a satellite carrier, a move that would put it in competition with carrier partners. But Apple doesn’t need to do to provide satellite communication services to iPhone users, nor would it want to relinquish the symbiotically profitable relationships it’s developed with carriers.

It could, for example provide satellite calling as a hardware feature available with every iPhone across all supported carriers, possibly as an additional service that guarantees customers can get a connection, even in the countryside. It could evangelize the service as being “Private by Design,” and supplement this with data over satellite to support apps, particularly agentic AI apps. 

Combined with the next wave of AI enhancements Apple is expected to deliver for its systems, the combination of an always-on, resilient, private data connection and AI could prove invaluable to many customers. That’s particularly true for enterprise customers seeking global solutions that respect sovereign data, privacy, data retention policy and managed AI services – especially as terrestrial infrastructure becomes an attack target. Such scenarios will only become more widely understood as 6G emerges, with its built-in support for satellite infrastructure.

What will Apple do?

Will Apple move in that direction, or maintain its focus on the consumer markets? Will it decide that rather than deploying its own part-owned satellite constellations as it was with GlobalStar, it is better to work with carrier partners? Will it wait for 6G with its enhanced, standards-based support for satellite communications? 

Those are answers we don’t yet have. But it is quite clear that as satellite communications truly enter the mass market, Apple has put together many of the technical, hardware, software and infrastructure pieces it will need to ensure the iPhone is a peer player in whatever use cases emerge. 

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