your current location is：Home > TechnologyHomeTechnology

　　Apple envisioned a scenario when it touts the iPhone 14's satellite communication capabilities: If you're stranded on a mountain with no mobile signal, your iPhone 14 can still send out SOS messages via satellite. Such designs make smartphones even more indispensable.

　　However, Apple's vision for satellite communication services may not be just for sending out distress signals. Currently, Apple is using more of its own chips in its devices, so it is likely that it wants to take better control of the Internet connection through satellite communication technology. Ultimately, Apple will compete directly with mobile operators such as AT&T.

　　Collaboration between smartphone makers and satellite communication companies is sweeping the world. Huawei is working with China's Beidou satellite network, and T-Mobile has signed a satellite communications agreement with SpaceX. SpaceX CEO Elon Musk has previously said the company had discussions with Apple. In addition, Amazon and Verizon, OneWeb and AT&T, Nokia and AST SpaceMobile have reached cooperation respectively. The goal of some collaborations is to connect cell phones directly to satellites, while others are to connect mobile communication base stations to satellites.

　　According to a partnership agreement between Apple and satellite communications company Globalstar, Apple plans to provide users in the United States and Canada with direct-to-satellite access to their phones by the end of 2022. Shares of Globalstar have risen more than 57% this year as a result of the partnership.

　　The development of satellite communication services requires large-scale investment, and the investment cycle can be as long as several years. Globalstar is currently in the red, with revenue of just $124 million last year. However, Apple's free cash flow has reached 93 billion US dollars, an increase of 1/4 from the previous year. These funds can be used to launch new satellites, as well as routine maintenance of satellites.

　　Apple also holds warrants in Globalstar to buy 2.64% of the company's outstanding shares at $1.01. The price is 43% below Globalstar's closing price on Friday. In return, Apple will receive 85% of the entire network's communication capacity.

　　Apple could reap huge rewards from it. If the use case for satellite communication services expands from emergency texting to Internet access, Apple could gain another recurring revenue stream. Accessing the Internet from anywhere is attractive to many users. For example, if 1% of U.S. iPhone users were willing to pay $100 a month for the service, it would increase Apple's annual revenue by nearly $1.5 billion.

　　The challenge is the attitude of regulators. Currently, there are thousands of satellites in low-Earth orbit, with tens of thousands more on the way. SpaceX alone wants to launch 42,000 satellites. Overcrowding can lead to accidents. However, Globalstar not only has a satellite network, but also has an approved satellite communication service. Therefore, this new cooperation from Apple will bring another advantage to the iPhone.