According to reports, SpaceX, owned by Elon Musk, may provide satellite communication services for Apple's (AAPL.US) iPhone.
The report indicates that to compete for future collaboration with Apple, SpaceX's new generation of satellites is compatible with the radio frequency spectrum used by Apple's existing satellite functionality—this spectrum is currently provided by Globalstar (GSAT.US). SpaceX's Starlink is expected to complete the deployment of its new generation satellite network in the coming years.
Meanwhile, the report cites sources saying that Globalstar's chairman, James Monroe, has discussed the possibility of selling the company at a valuation of over $10 billion. Boosted by this news, Globalstar's stock price rose nearly 5% on Thursday.
Although Apple's relationship with Musk's companies has not always been smooth, the report notes that Apple has strong motivation to repair its relationship with Musk. The reason is that the network speed of Globalstar, which currently provides satellite services for the iPhone, is slow and its technology is outdated. The company recently warned that losing Apple as a customer would lead to significant financial impacts.
Sources revealed that while Apple has the right to exercise its preemptive purchase rights when Globalstar seeks buyers, the likelihood of acquisition is extremely low. The core reason is that Apple is unwilling to transform into a telecommunications service provider and does not want to be subject to regulations related to operators.
Analysts interviewed stated that Musk now controls the spectrum resources of EchoStar (SATS.US), making it increasingly difficult for companies like Apple to conduct business without involving SpaceX.
Tim Farrar, president of satellite consulting firm TMF Associates, stated: &#34;If Apple abandons competition with SpaceX, Starlink will have virtually no rivals in this market. This will solidify Starlink's dominant position.&#34;

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Apple may abandon Globalstar's satellite communication services and instead collaborate with Musk's SpaceX. SpaceX's next-generation satellites are already compatible with Apple's iPhone radio spectrum and are expected to be fully deployed in the coming years. Globalstar is facing financial pressure, and losing Apple as a customer would have a significant impact. Analysts point out that Apple is unlikely to acquire Globalstar as it does not want to become a telecom service provider. If Apple collaborates with SpaceX, Starlink will solidify its market dominance

- SpaceX is reportedly set to provide satellite communication services for Apple's iPhone, with new satellites compatible with existing Apple technology.  
- Globalstar, the current provider, is facing challenges due to slow network speeds and outdated technology, prompting discussions of a potential sale valued over $10 billion.  
- Analysts suggest that if Apple chooses not to compete with SpaceX, Starlink could dominate the market, solidifying its leading position.

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It is reported that Apple may abandon Globalstar for Musk's SpaceX for satellite communication services