Neil Cybart 3/2/23 Neil Cybart 3/2/23

Apple Lends $250M to Globalstar, Why Doesn’t Apple Get Into Satellites?, EU Narrows Apple Probe (Daily Update)

Hello everyone. Today’s update kicks off with Neil’s thoughts on Apple lending $250M to Globalstar. The discussion then expands to talk about Apple getting into the satellite business itself. We conclude with a closer look at the EU narrowing its Apple probe to focus on anti-steering.

Let’s jump right into today’s update.

Apple Lends $250M to Globalstar

Over at SpaceNews, here’s Jason Rainbow:

“Globalstar said Feb. 28 that Apple is lending the company $252 million to help cover upfront costs for replenishing its low Earth orbit (LEO) constellation.

Apple is providing the funds as a prepayment for using the network to upgrade satellite services launched last year for its latest iPhone, which can connect with one of Globalstar’s existing 24 satellites in LEO for emergency services outside cellular coverage.

Globalstar picked MDA and Rocket Lab in February 2022 to supply an initial 17 satellites for launch by the end of 2025 in a contract worth $327 million. The contract includes an option for up to nine additional satellites at $11.4 million each.

The satellite operator intends to fund any upfront costs not covered by Apple’s prepayment with its own cash.

Apple has already agreed to reimburse Globalstar for 95% of the constellation; however, it previously required the satellite operator first to raise third-party financing to fund the manufacturing contract.

Removing the need to raise this financing amid challenging macroeconomic conditions clears a significant degree of uncertainty for Globalstar’s constellation plans.”

With interest rates continuing to rise and prospects of securing third-party financing getting dim, Globalstar was in trouble. Apple decided to jump in and loan Globalstar the required cash to keep moving forward (to construct and deploy satellites for Apple). The use of “decided” may be charitable as Apple probably didn’t have much choice other than to step in and bail Globalstar out. Without the loan, Globalstar may not have been able to launch the satellites that Apple needs.

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Neil Cybart 12/14/22 Neil Cybart 12/14/22

Apple Planning for iPhone and iPad Sideloading in EU, Thinking Through Sideloading Implications, The Absurdity Known as the Digital Markets Act (Daily Update)

The update is dedicated to discussing the latest regarding Apple and the Digital Markets Act (DMA). The EU regulation targeting Big Tech was signed into law in September. We go over the differences found between Apple allowing sideloading and alternative app stores on iPhones and iPads. The discussion also covers how Neil thinks Apple can go about offering sideloading. The update concludes with why Neil thinks the DMA is one of the most absurd pieces of tech regulation that has existed.

Hello everyone. Today's update will go over the latest regarding Apple and the Digital Markets Act (DMA). The EU regulation targeting Big Tech was signed into law in September. Let's jump right in.

Apple Planning for iPhone and iPad Sideloading in EU

Over at Bloomberg, here’s Mark Gurman:

“Apple Inc. is preparing to allow alternative app stores on its iPhones and iPads, part of a sweeping overhaul aimed at complying with strict European Union requirements coming in 2024.

Software engineering and services employees are engaged in a major push to open up key elements of Apple’s platforms, according to people familiar with the efforts. As part of the changes, customers could ultimately download third-party software to their iPhones and iPads without using the company’s App Store, sidestepping Apple’s restrictions and the up-to-30% commission it imposes on payments.

The moves — a reversal of long-held policies — are a response to EU laws aimed at leveling the playing field for third-party developers and improving the digital lives of consumers. For years, regulators and software makers have complained that Apple and Google, which run the two biggest mobile app stores, wield too much power as gatekeepers…

The changes underway within Apple are being led by Andreas Wendker, a longtime software engineering vice president who reports to Craig Federighi, the company’s top software executive. Jeff Robbin — Apple’s top engineering manager for its services, who reports to head of services Eddy Cue — is also involved.”

There is a lot of detail missing from Gurman’s piece.

At the beginning of his article, Gurman says that Apple is preparing to allow “alternative app stores” on iPhone and iPads in response to the Digital Markets Act (DMA). A few sentences later he merely says Apple will allow users to “download third-party software” to iPhones and iPads. Those two things may sound similar to each other, but they can lead to dramatically different outcomes for both developers and users.

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