What happened
Shares of the satellite communications company Globalstar (NYSEMKT: GSAT), which kicked off last month by speculating that apple (NASDAQ: AAPL) could incorporate satellite capability into its new iPhone 13 smartphone – to bend Globalstar’s stock price in less than a month: It fell back to Earth on Tuesday. As of 15:15 EDT, Globalstar shares were down 21%.
And Apple is the reason.
Image source: Getty Images.
And what
According to the theory, Apple was preparing to announce the new features and capabilities of this year’s iteration of the iPhone, the iPhone 13. Well, apparently, Apple announced the iPhone 13 in a revelation of ‘today, and as we just posted learned, will have a starting price of $ 799, an A15 Bionic processor, an AMOLED display, up to 1 TB of storage …
And no mention of satellite phone capability.
Now that
This is just a disappointment for the satcom phone provider Iridium Communications, which Bloomberg had already confirmed last month that it would not partner with Apple in any hypothetical satellite phone plan. (Anyway, Iridium shares have fallen 3.7%, perhaps because some investors expected Bloomberg to be wrong about that).
Meanwhile, for Globalstar, the lack of a satcom announcement at Apple’s big event was once again overwhelming. Unprofitable and trading at an astonishing 38 times higher revenue than on Friday, Globalstar shares were priced as if their association with an Apple satellite phone was almost guaranteed.
Now, that bubble has burst, and I’m not sure there’s much of a discomfort in Globalstar shares falling back into the same penny territory that was only listed in April.
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