launched about 240 so far. Amazon just made an $11.57 billion bet that it can compete with Elon Musk in space. The company agreed to buy Globalstar - a satellite operator - for $90 a share, giving Amazon's Leo satellite service the ability to connect directly to phones without a dish or special gear. The deal also comes with a new partnership, as Amazon and Apple signed an agreement for Leo to power satellite services on iPhones and Apple Watches.
The Gap With SpaceX
Amazon is playing catch-up, since SpaceX's Starlink has more than 10,000 satellites in orbit and over 9 million customers. Amazon has launched about 240 satellites since last April after rebranding its service from Project Kuiper to Leo.
The Globalstar deal gives Amazon a path to direct-to-device connectivity, meaning phones can talk to satellites without any extra hardware. Amazon plans to start building its own direct-to-device satellite system and expects to begin deploying it in 2028.
Why Apple Matters
The scale play: if every new iPhone can connect to Amazon's satellite network for texting, emergency calls, and roadside help, that's hundreds of millions of potential users baked into the biggest consumer electronics ecosystem in the world. Amazon shares rose about 5% on the news, sending Globalstar up 10%.
What to Watch
The deal needs regulatory approval and is expected to close in 2027. The real test comes down to execution - Amazon needs to launch thousands more satellites to match Starlink's coverage, and building a direct-to-device system from scratch takes years.
