Why Globalstar Stock Is Tumbling Wednesday

Globalstar Inc GSAT shares are falling Wednesday after Apple Inc AAPL teamed up with SpaceX to offer support for the Starlink satellite network on iPhones.~

What Happened: Apple’s latest iPhone software update, which was released on Monday, now supports SpaceX’s Starlink service. According to Bloomberg, the companies have been secretly working with T-Mobile US Inc TMUS to add the satellite service as an alternative to Apple’s existing satellite offering.

Apple already offers a satellite service through its collaboration with Globalstar. Globalstar shares were down more than 25% at last check, per Benzinga Pro.

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People familiar with the matter said when T-Mobile phones lose cellular connectivity, they will now first try to pair with SpaceX satellites. The initial rollout of the service is currently only available in the U.S., while Globalstar’s offering is available in multiple countries.

A major difference between the two satellite offerings is that the Globalstar service requires iPhone users to point their phones to the sky to help locate satellites. The report indicates that the Starlink service is expected to work automatically without having to adjust the phone’s location.

There has been speculation about whether Apple would offer support for additional satellite networks. After Apple announced a deal with Globalstar in 2022, SpaceX’s Elon Musk made a post suggesting SpaceX had been in talks with Apple about potentially offering Starlink connectivity.

SpaceX reportedly requested authorization to begin beta-testing the service on Monday.

GSAT Price Action: Globalstar shares were down 17.8% at $1.56 at the time of publication Wednesday, according to Benzinga Pro.

Photo: courtesy of SpaceX.