Look what a Ming-Chi Kuo rumor can do.
From CNBC’s “Shares of Globalstar soar 50% on rumor iPhone 13 will use satellites directly” posted Monday:
Shares of Globalstar, a satellite services provider, soared more than 50% Monday following a report that the next iPhone will have the ability to utilize satellite communications.
TFI Securities analyst Ming-Chi Kuo predicted in a note to investors Sunday that Apple is “optimistic about the trend of satellite communications” and “will likely” include the ability to connect to extraterrestrial networks in its upcoming iPhone.
The new iPhone is expected to launch this fall. Apple has not announced any details on the device yet. The phone doesn’t have an official name, but many are referring to as the iPhone 13 for now.
Kuo said that Globalstar is most likely to partner with Apple. The company has an existing satellite phone network of 24 satellites in low Earth orbit.
“If Apple enables the relevant software functions, iPhone 13 users can call and send messages via satellite when not within 4G/5G coverage,” Kuo wrote.
My take: Good scoop, if true.
See also: What Ming-Chi Kuo said about the iPhone 13 and near earth orbit
UPDATE: Uh oh. Sascha Segan, who covers this beat, calls BS on the “talk to satellites” bit.
OKAY. I think I may have gotten to the bottom of this “iPhone 13 will include satellite connectivity” rumor, and it could be “iPhone Math” levels of game-of-telephone. The key: Globalstar.
— Sascha Segan (@saschasegan) August 30, 2021
For more skeptical reactions, see Rumor-blaster: The iPhone 13 is NOT a satellite phone
Few people understand the power consumption of cell sites and switching centers. Solar is very efficient above the clouds. Cell site power consumption is massive. The hardware vulnerable to hurricanes, fires, floods, tornados, and vandals stealing the handles. Putting some or all of that hardware in space reduces the concerns to collisions with space junk, space war and solar flares.
This development removes the telecom monopolies from their lofty perch. Finally, it offers the potential of removing government censorship without constantly requiring proxy servers. Given Apple’s propensity for augmenting user privacy, it fits right in with Apple, Inc.
Even if today’s rumor is not true, I can see Samsung or Xiaomi or other handset makers drooling over the $3.50 AAPL share price spike this morning. Engineers there are already exploring satellite signal use. A.C. Clarke was definitely on to something.
Holding AAPL under 150 probably involved a fair amount of short selling from those who believed the negative thesis.
If true, though the rumor maybe the spark, we might very well be seeing a little short squeeze accelerating this.
Also, rumors of Apple event mid month date probably means event invitations soon, and players trying to get ahead of that.
“…decent trading volume…”
Volume is another key driver to this rally. We just passed 60 M shares traded, and its a little over halfway through the trading day. We’ve seen sub-50 M trades for the whole day lately. But even doubling to 100-120 M open market adjusted for the last split is only 25-30 M shares traded relatively speaking. Last year that was an average day!
With Apple continually removing shares, Apple has been incrementally moving AAPL shareholders to buy and hold for years. We’re now witnessing the impact of that long term process.
More support for what I call the ‘ratchet effect’, as the stock ratchets up.