KEY POINTS
  • Globalstar, based in Louisiana, is providing satellite services to Apple, which is getting a chance to buy up to 2.64% of Globalstar's outstanding shares.
  • Apple will rely on the Globalstar service to enable iPhones to send emergency messages.

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Apple CEO Tim Cook speaks at an event at the Apple Park campus in Cupertino, California, on Sept. 7, 2022. At a presentation dubbed Far Out, Apple is set to unveil the iPhone 14 line, a fresh slate of smartwatches and new AirPods.

Mobile satellite-communications company Globalstar saw its shares jump as much as 42% after being halted for news during Wednesday's trading session. The company disclosed during Apple's annual fall hardware launch event that it would be operating a satellite-powered emergency SOS service for the forthcoming iPhone 14. The stock closed down 1% but was up about 2% after hours.

The stock quickly gave up most of those gains and is currently trading up about 5% for the day, after being down more than 10% prior to the announcement. Nonetheless, the stock move shows how exposure to a large technology company such as Apple can have a significant impact on a smaller entity's operations.

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