One sentence summary – Qualcomm has ended its partnership with Iridium for satellite-to-phone services, leading to a drop in Iridium’s stock, while Apple and other industry players are actively pursuing satellite connectivity for smartphones, reflecting a growing interest in leveraging satellite technology for enhanced communication capabilities, particularly in emergency situations.
At a glance
- Qualcomm terminates partnership with Iridium for satellite-to-phone services
- Iridium’s stock drops over 8% in after-hours trading
- Apple shows commitment to satellite connectivity with “Emergency SOS with Satellite” service
- Qualcomm cites lack of adoption by smartphone manufacturers as reason for termination
- Iridium remains optimistic about industry’s shift towards increased satellite connectivity in consumer devices
Qualcomm has recently announced the termination of its partnership with Iridium for satellite-to-phone services.
This decision has led to immediate repercussions, with Iridium’s stock experiencing a significant drop of over 8% in after-hours trading.
The partnership between Qualcomm and Iridium was aimed at integrating satellite-to-phone technology into smartphones.
However, the lack of adoption by smartphone manufacturers led Qualcomm to terminate the agreement.
Notable industry players, including Apple, Iridium, SpaceX, AT&T, T-Mobile, and AST SpaceMobile, are actively pursuing the market for connecting unmodified phones directly to satellites.
Apple has shown a strong commitment to satellite connectivity with its “Emergency SOS with Satellite” service.
This service was introduced with the iPhone 14 models, indicating Apple’s heavy investment in this feature.
This move by Apple reflects the growing interest in enhancing communication capabilities, especially in emergency situations, by leveraging satellite technology.
Qualcomm has explained that smartphone manufacturers prefer standards-based solutions for satellite-to-phone connectivity.
This preference likely influenced Qualcomm’s decision to end the partnership with Iridium.
As a result of this development, Iridium is now free to explore alternative collaborations and engage with other companies working on satellite-to-cell projects.
It is important to note that the termination of the agreement between Qualcomm and Iridium does not impact Iridium’s full-year 2023 financial guidance.
Despite expressing disappointment, Iridium’s CEO, Matt Desch, remains optimistic about the industry’s shift towards increased satellite connectivity in consumer devices.
This development underscores the ongoing efforts within the telecommunications industry to find innovative ways to connect smartphones directly to satellites.
As major players continue to invest and explore this emerging market, the future of satellite-to-phone connectivity remains an area of significant interest and potential growth.
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|– Qualcomm has ended its partnership with Iridium to provide satellite-to-phone services.
– Iridium’s stock fell over 8% in after-hours trading following the announcement.
|– Smartphone makers have not included the satellite-to-phone technology in their devices, leading Qualcomm to end the agreement.
|– Major players in the industry, including Apple, Iridium, SpaceX, AT&T, T-Mobile, and AST SpaceMobile, are pursuing the market for connecting unmodified phones directly to satellites.
|– Apple is investing heavily in its “Emergency SOS with Satellite” service, which was introduced with iPhone 14 models.
|– Qualcomm stated that smartphone makers prefer standards-based solutions for satellite-to-phone connectivity.
|– Iridium can now re-engage with other companies working on satellite-to-cell projects.
|The end of the agreement with Qualcomm does not impact Iridium’s full-year 2023 financial guidance.
– Iridium’s CEO, Matt Desch, expressed disappointment but believes that the industry is moving towards increased satellite connectivity in consumer devices.