Apple could pick Musk's firm for satcom services over Globalstar, which might sell itself

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According to a Thursday report by technology news outlet _The Information_, Elon Musk's SpaceX (SPACE [https://seekingalpha.com/symbol/SPACE]) could provide satellite connectivity to Apple's iPhones (NASDAQ:AAPL [https://seekingalpha.com/symbol/AAPL]).

The report said that in anticipation of a possible future arrangement with Apple, SpaceX has added support in its new satellite designs for the same radio spectrum Apple uses for the iPhone’s current satellite features, which Globalstar provides. Starlink (STRLK [https://seekingalpha.com/symbol/STRLK]), the unit within SpaceX, expects to have its next-generation satellite constellation in operation in the coming years.

At the same time, the report, citing sources, said Globalstar chairman James Monroe talked about the possibility of selling his satellite company for more than $10B. GSAT shares are up nearly 8% in the current trading session.

Apple and Musk's companies did not always have the best of relationships, but according to the report, Apple has incentives to make peace with Musk, as Globalstar, which recently warned of a financial impact if it loses Apple as a customer, has a slower and outdated network compared to Starlink.

The report also suggested Apple is unlikely to buy Globalstar, even though it has the right to buy the satcom provider before it sells itself to another suitor, because the company does not want to turn into a telecommunications provider and doesn’t want to be regulated as a carrier, sources told _The Info_.

Analysts who spoke to the news outlet say it’s becoming increasingly difficult for a company like Apple to maneuver around SpaceX now that Musk has EchoStar’s (SATS [https://seekingalpha.com/symbol/SATS]) spectrum at his disposal.

"If Apple gives up on trying to compete with SpaceX, then Starlink becomes almost unchallengeable in this market," Tim Farrar, president at satellite consulting firm Telecom, Media and Finance Associates, told _The Info_. "It cements their dominance."

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