Los Angeles Times

Apple may be pursuing satellite tech

Secret project could enable the company to bypass wireless networks or improve location tracking.

- By Mark Gurman Gurman writes for Bloomberg.

Apple Inc. has a secret team working on satellite technology that the iPhone maker could use to beam internet services directly to devices, bypassing wireless networks, according to people familiar with the work.

The Cupertino, Calif.based iPhone maker has about a dozen engineers from the aerospace, satellite and antenna-design industries working on the project with the goal of deploying their results within five years, said the people, who asked not to be identified discussing internal company efforts.

Work on the project is still early and could be abandoned, the people said, and a clear direction and use for satellites hasn’t been finalized. Still, Apple Chief Executive Tim Cook has shown interest in the project, indicating it’s a company priority.

Apple’s work on communicat­ions satellites and next-generation wireless technology means the aim is likely to beam data to a user’s device, potentiall­y mitigating the dependence on wireless carriers, or to link devices together without a traditiona­l network. Apple could also be exploring satellites for more precise location tracking for its devices, enabling improved maps and new features.

It’s not clear whether Apple intends to pursue the costly developmen­t of a satellite constellat­ion itself or simply harness on-theground equipment that would take data from existing satellites and send it to mobile devices.

Northrop Grumman Corp., Lockheed Martin Corp. and Boeing Co. are some of the biggest satellite makers. An Apple spokeswoma­n declined to comment.

Amazon.com Inc. plans to deploy more than 3,000 satellites as part of a future constellat­ion. However, the industry is littered with failures. Iridium filed for bankruptcy protection in 1999, and Teledesic abandoned its “internet from the sky” plan more than a decade ago. Newer efforts from Facebook, SpaceX and Amazon are a long way from generating revenue, and Apple rarely enters new categories without a clear way to make money.

“The lessons of prior failures like Iridium, Globalstar and Teledesic are that it’s really hard to find a viable business plan for multibilli­on-dollar satellite communicat­ions projects,” said Tim Farrar, a satellite expert and principal at TMF associates.

In recent months, Apple has started hiring new software and hardware experts for the team, seeking engineers with experience in designing components for communicat­ions equipment. The company has also hired additional executives from the aerospace and wireless data delivery fields.

The team is led by Michael Trela and John Fenwick, former aerospace engineers who helped lead satellite imaging company Skybox Imaging before it sold to Google in 2014. The pair led Google’s satellite and spacecraft operations until leaving together in 2017 to begin a new initiative at Apple, Bloomberg News reported at the time.

During their first year and a half at Apple, Trela and Fenwick explored the feasibilit­y of developing satellite technology and understand­ing the problem they want to solve, and in recent months have started intensifyi­ng work on the project.

The effort suffered a setback earlier this year when its previous leader, Greg Duffy, left Apple after joining in 2016. Duffy, the co-founder of camera start-up Dropcam, reported to Dan Riccio, Apple’s senior vice president of hardware engineerin­g.

On his LinkedIn profile, Duffy said he worked on projects involving “satellite communicat­ions, wireless, and home products/technologi­es.” He declined to comment more specifical­ly on his work at Apple.

Trela and Fenwick still work within Apple’s hardware engineerin­g division, but now report to Riccio’s lieutenant in charge of iPhone engineerin­g.

The team has recently added people from the wireless industry, including engineer Matt Ettus, who now helps lead the initiative, people familiar with the team said. Ettus is one of the foremost names in wireless technologi­es and created Ettus Research, a firm that sells wireless networking equipment.

Apple has also hired Ashley Moore Williams, a longtime executive from Aerospace Corp. who focused on communicat­ion satellites, and Daniel Ellis, a former Netflix Inc. executive who helped oversee the company’s Content Delivery Network, or CDN. Ellis has experience in building networks that can beam content and informatio­n on a global scale.

The work on satellite technology is one of several “special projects” underway at the company.

As Bloomberg has previously reported, Apple also is working on a virtual reality headset to debut as early as 2021, augmented reality glasses for launch after that, MicroLED screens for future devices, new home products, self-driving car technology and a future Apple Watch that can analyze a user’s blood chemistry to determine glucose levels.

Apple is also expanding its in-house chip developmen­t, seeking to replace Intel Corp. as its Mac processor maker, and Intel and Qualcomm Inc. as the providers of its modem component for phones.

Under Cook, Apple has rapidly expanded its research and developmen­t budget, spending $16 billion in the 2019 fiscal year, an increase of 14% from the prior year, according to company filings. One of Apple’s primary goals is to bring more of the technology behind its products in house, which is what work on satellites could eventually enable.

 ?? Justin Sullivan Getty Images ?? IT’S NOT CLEAR whether Apple, above, intends to develop a satellite constellat­ion itself or simply take data from existing satellites.
Justin Sullivan Getty Images IT’S NOT CLEAR whether Apple, above, intends to develop a satellite constellat­ion itself or simply take data from existing satellites.

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