The tech giant just signed this $11 billion deal. Here’s why I think it’s a
mistake.
Apple just signed an $11 billion satellite deal with Amazon.
It will provide Apple satellite service for iPhones and Apple Watches.
But Amazon's satellite network is light years behind SpaceX's Starlink.
That’s why I think Apple just made a mistake it'll regret for a long time.
Go here to access the SpaceX Pre-IPO today.
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Here's the deal in a nutshell.
Amazon is acquiring satellite operator Globalstar for around $11 billion.
Globalstar already powers Apple's Emergency SOS feature on the iPhone.
As part of the same announcement, Apple signed a long-term agreement with
Amazon to keep powering iPhone and Apple Watch satellite services going forward.
But here's why I think Apple got this one wrong.
Back in 2022, Elon Musk reportedly offered Apple a Starlink partnership for
the iPhone.
Apple said no.
Internal reports later revealed that some Apple employees worried Globalstar's
network was outdated and limited compared to what Starlink could offer.
And they were right on the money about that.
Four years later, the gap between Starlink and competitors is enormous.
Starlink has more than 10,000 satellites in orbit while Amazon's Leo network
has just over 300.
Starlink already has direct-to-device service rolling out through T-Mobile in
the US.
Amazon's direct-to-device service won't deploy until 2028 at the earliest.
Starlink serves over 10 million customers in 150+ countries, while Amazon's
commercial service hasn't even launched yet.
Amazon has also had to scramble for launch capacity… from Blue Origin, ULA,
Arianespace, and even SpaceX itself.
And just last month, Blue Origin's New Glenn rocket (one of Amazon's main
launch partners) failed mid-flight, sending a customer satellite to the wrong
orbit.
The FAA has now grounded the vehicle pending investigation.
That means Amazon is currently relying on SpaceX's Falcon 9 to launch the
satellites it's hoping will compete with SpaceX.
That’s why I think Apple made the wrong bet here.
SpaceX's lead in the satellite race is not only massive but it’s getting
bigger by the day.
Every month, Starlink adds more satellites, more countries, more partnerships,
and more revenue.
That’s why I’m claiming my Pre-IPO shares thanks to this little-known backdoor.
Here’s how you can claim yours for as little as $100.
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Ian Wyatt
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