Apple on Wednesday announced the launch of satellite communications for the iPhone 14, with satellite communications company Globalstar (Globalstar) providing this emergency service. It was this news that sent Globalstar’s stock price on a roller coaster ride. For more than a year, the industry has been rumored that Globalstar will provide support for Apple’s iPhone satellite service.
Globalstar offers satellite capability for iPhone 14
Some investors had expected the service to be announced at last year’s iPhone launch. On Wednesday, Apple confirmed at the iPhone 14 launch that it would launch the text-based service.
The satellite service is expected to be available to customers in the fourth quarter of 2022, Globalstar explained in a filing. “Under the terms of the partnership agreement, Globalstar must raise additional debt capital for the construction and launch of new satellites. Globalstar has engaged Goldman Sachs and is currently exploring capital market opportunities and expects to complete the financing in the fourth quarter of 2022.” Globalstar said. The service will launch in the U.S. and Canada in November, Apple said in the release.
Globalstar stock was suspended prior to the Apple launch when its stock price fell 15.8%. After resuming trading, Globalstar shares rose more than 40 percent at one point, then fell back to nearly 10 percent before continuing to retreat. As of Wednesday’s close, Globalstar shares were down 1.9 percent. Apple shares closed up 0.9 percent. The S&P 500 index rose 1.8% on the day.