Globalstar shares jumped in premarket trading after AppleInsider analyst Ming-Chi Kuo says the new iPhone 13 may use the Qualcomm X60 baseband chip to allow users to make calls in cellular dead zones by relying on low-Earth orbit satellites.
"There are many potential scenarios for Apple's business model cooperation with Globalstar," Kuo wrote. "The simplest scenario is that if the user's operator has already teamed with Globalstar, the user can directly use Globalstar's satellite communication service on the iPhone 13 through the operator's service."
In a note to investors, seen by MacRumors, Kuo explained that the iPhone 13 lineup will feature hardware that is able to connect to LEO satellites. If enabled with the relevant software features, this could allow iPhone 13 users to make calls and send messages without the need for a 4G or 5G cellular connection.
The iPhone 13 reportedly features a customized Qualcomm X60 baseband chip that supports satellite communications. Other smartphone brands are apparently currently waiting until 2022 to adopt the X65 baseband chip necessary to implement satellite communications functions. -MacRumors
There's no report if the report is accurate but William Blair analyst Louie DiPalma says Apple may partner with Iridium Satellite Communications instead.
Both Globalstar and Iridium are up premarket.
Globalstar has soared the most premarket, up more than 70%. Its float is about 6.78% short.
Iridium is up only 7% with a 5.78% short float.
There has yet to be any confirmation from Apple about the new iPhones using satellite communications.