Apple’s latest iPhone update, iOS 18.3, has brought an unexpected yet significant addition: compatibility with SpaceX’s Starlink satellite network.

Bloomberg’s Mark Gurman revealed that Apple has been working behind the scenes with SpaceX and T-Mobile to enable Starlink support, offering an alternative to its existing partnership with Globalstar for satellite-based emergency services.

While T-Mobile had previously launched a Starlink-powered option for Samsung users to send emergency messages beyond cellular coverage, Apple’s Emergency SOS via satellite has relied exclusively on Globalstar—until now.

A post on X by Mario Nawfal, founder of IBC Group, called the update a "game changer," highlighting that Starlink’s direct-to-smartphone service doesn’t require users to point their devices at the sky, unlike Apple’s current Globalstar-based system. Nawfal’s post was later reposted by Elon Musk, who added:

“Medium resolution images, music & audio podcasts should work with the current generation Starlink direct-to-phone constellation. Next generation constellation will do medium resolution video.”

The market responded swiftly. 

Globalstar’s stock—which has long been Apple’s satellite partner—tumbled nearly 18% the next day. AST SpaceMobile, another player in the direct-to-smartphone satellite race, fell 12%, while Canada’s MDA, which is building at least 17 satellites for Globalstar under an Apple-funded agreement, saw a 9% decline.

The key distinction between Globalstar and its competitors lies in spectrum licensing. Unlike Starlink and AST SpaceMobile, which rely on cellular partnerships to deliver satellite-to-phone services, Globalstar operates on Mobile Satellite Services (MSS) spectrum licenses. This difference could have major implications for how Apple navigates its satellite strategy going forward.

With Starlink now directly integrated into iOS, Apple is positioning itself at the centre of the rapidly evolving satellite-to-smartphone landscape. The move raises questions about the future of its Globalstar deal, the competitive dynamics between emerging satellite providers, and whether Starlink’s ambitions will extend beyond emergency services into full-scale satellite messaging or even broadband for iPhones.