AST SpaceMobile, Inc. ( ASTS ) shares are trading lower Wednesday potentially following Apple Inc. ( AAPL )'s announcement of a partnership with SpaceX's Starlink and T-Mobile to introduce satellite texting capabilities for iPhone users.

What To Know: Apple ( AAPL ) integrated Starlink satellite services into its latest iOS 18.3 update, enabling limited beta testing for select T-Mobile customers in the U.S. This move marks a shift from T-Mobile's prior focus on Starlink compatibility with Samsung devices.

The announcement raises concerns for AST SpaceMobile ( ASTS ), which aims to provide direct-to-device satellite communication services. Apple’s partnership with Starlink, a major competitor in the satellite sector, may add pressure to AST SpaceMobile's ( ASTS ) market position.

CEO Abel Avellan stated that the additional capital will accelerate the company's manufacturing and launch plans. The notes carry a 4.25% interest rate with a seven-year maturity and an effective conversion price of $44.98 per share, designed to minimize shareholder dilution. AST SpaceMobile ( ASTS ) also executed a capped call hedge to mitigate potential dilution and maintain flexibility in handling future conversions.

ASTS Price Action: AST Spacemobile ( ASTS ) shares were down 11.4% at $17.85 at the time of writing, according to Benzinga Pro.

Read Next:

Why Globalstar Stock Is Tumbling Wednesday

Image Via Shutterstock.