Apple on Wednesday announced the launch of satellite communications for the iPhone 14, an emergency service provided by satellite communications company Globalstar. It was this news that sent Globalstar's share price on a roller coaster ride. For more than a year, the industry has been rumored that Globalstar will power Apple's iPhone satellite service. Some investors had expected the service to be announced at last year's iPhone launch. On Wednesday, Apple confirmed at the iPhone 14 launch event that it would launch the text-based service.
The satellite service is expected to be available to customers in the fourth quarter of 2022, Globalstar explained in a filing. “Under the terms of the cooperation agreement, Globalstar must raise additional debt capital for the construction and launch of new satellites. Globalstar has entrusted Goldman Sachs Group and is currently exploring capital market opportunities and is expected to complete the financing in the fourth quarter of 2022.” Globalstar said . The service will be available in the U.S. and Canada in November, Apple said at the launch.
Globalstar shares were suspended ahead of Apple's launch, when its shares fell 15.8%. After trading resumed, Globalstar's stock price rose more than 40% at one point, then fell back to nearly 10%, and then continued to fall. Shares of Globalstar were down 1.9% as of Wednesday's close. Apple shares closed up 0.9%. The S&P 500 rose 1.8% on the day.
0 Comments