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Investing.com -- Shares of Globalstar (NYSE:GSAT) plummeted 20%, while AST Space (NASDAQ:ASTS) fell 12% following a Bloomberg News report that Apple (NASDAQ:AAPL) has been collaborating with SpaceX and T-Mobile (NASDAQ:TMUS) to integrate support for the Starlink network into the latest iPhone software.
The unexpected alliance with SpaceX’s Starlink network represents a potential shift away from reliance on traditional satellite communication providers like Globalstar. According to sources familiar with the matter, Apple has been testing the Starlink service with its iPhones and quietly updated its software on Monday to support the technology. This development comes as a surprise given that T-Mobile had previously indicated Starlink would only be available for Samsung (KS:005930) phones, such as the Z Fold and S24 models.
Apple’s current satellite communication service, which enables text messaging and emergency contact outside of cellular range, is provided through Globalstar. The news that Apple is exploring alternatives with SpaceX’s Starlink may have sparked concerns among investors about Globalstar’s future relationship with the tech giant.
T-Mobile has started to sign up customers for an early version of the Starlink service and initiated a beta test with a select number of iPhones this week. Elon Musk, CEO of SpaceX, commented on the collaboration, suggesting that current Starlink technology supports images, music, and podcasts, with future updates expected to enable video streaming capabilities.
The market reaction reflects the potential impact on Globalstar’s business, given the company’s existing partnership with Apple. The shift towards Starlink could pose a significant challenge for Globalstar, as Apple’s user base represents a substantial market for satellite communication services.
Investors are closely monitoring the situation as the partnership between Apple, SpaceX, and T-Mobile evolves, with particular attention to how this may affect Globalstar’s business and stock performance going forward.
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