Apple (AAPL) has been working with Elon Musk’s SpaceX and wireless network operator T-Mobile (TMUS) to boost iPhone capabilities with Starlink satellite connectivity, Bloomberg reported. With this move, Apple aims to provide satellite support for iPhones, ensuring connectivity in remote areas. In yesterday’s regular trading session, Apple stock was up 3.7%.
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The feature was included in the latest iOS 18.3 update, with T-Mobile conducting a beta test for Starlink connectivity on select iPhones. All iPhone 14 and newer models will be compatible with the new Starlink feature. Initially focusing on texting, both T-Mobile and SpaceX plan to expand the service to include data and voice calls in the future.
This Is Not Apple’s First Foray into Satellite Services
Apple already offers satellite communication through its partnership with Globalstar (GSAT), a U.S.-based telecom company. This service was introduced with the iPhone 14 in 2022.
It is worth noting that the key difference between the service provided by Globalstar and Starlink pertains to availability. Globalstar’s service is available in several countries, while Starlink’s service is limited to the U.S. at present.
Apple to Report Q4 Earnings on January 30
The positive development comes as Apple prepares to report its fourth-quarter earnings on January 30.
Currently, analysts expect AAPL to post revenue of $124.27 billion in Q4, up from $119.56 billion in the year-ago quarter. Further, the company is expected to report earnings of $2.35 per share, compared with earnings of $2.18 in the prior-year quarter.
Is Apple a Buy or Sell?
Turning to Wall Street, Apple stock has a Moderate Buy consensus rating based on 19 Buys, seven Holds, and four Sells assigned in the last three months. At $243.24, the average Apple price target implies a 2.09% upside potential. Shares of the company have gained 9.42% over the past six months.
