Apple is preparing a satellite expansion for iPhone, a $1 billion deal with Google, and its first budget MacBook

Apple is planning a major expansion of its satellite capabilities for the iPhone and Apple Watch, according to Bloomberg’s Mark Gurman in his latest Power On newsletter.

In addition, Apple is close to finalizing a multibillion-dollar deal with Google to use a custom version of the Gemini model inside a revamped Siri, and is also working on the most affordable MacBook in the company’s history, a response to low-cost Windows laptops and Chromebooks.

Satellite features

According to Gurman, Apple intends to bring satellite connectivity in its devices to a new level. After launching Emergency SOS via Satellite in 2022 and later adding roadside assistance through AAA, the company is now preparing the next phase:

• Satellite data for third-party apps: Apple is developing an API that will allow app developers to integrate satellite connectivity directly into their software.
• Satellite navigation in Apple Maps: This would enable maps to function without Wi-Fi or cellular signal.
• Expanded media messaging: Users will be able to send photos and other media files — not just text — over satellites.
• “Natural usage” support: Satellite connectivity will work automatically, without needing to point the iPhone at the sky — functioning in a pocket, car, or even indoors.

Apple is also preparing to support 5G NTN (non-terrestrial networks) — a technology that allows mobile carriers to extend coverage via satellites. This capability is expected to arrive with next year’s iPhone models.

Google deal: Siri gets Gemini intelligence

Alongside the satellite work, Apple is close to completing a deal with Google worth around $1 billion per year. Gurman reports that Apple plans to integrate a custom version of Google’s Gemini model into Siri, which will receive a major upgrade in spring 2026.

The internal model, codenamed AFM v10 (Apple Foundation Model), is expected to contain 1.2 trillion parameters, nearly eight times the size of the current Apple Intelligence system. Despite this, Apple does not plan to publicly emphasize the Google partnership, in order to avoid confusion among users and employees. Officially, Siri will continue to be presented as Apple-built.

Gurman describes the move as a pragmatic decision — similar to 2020, when Apple was forced to use Qualcomm modems in order to deliver 5G support. Long-term, Apple still intends to develop language models of equivalent scale entirely in-house.

A new budget MacBook to compete with Chromebooks

Gurman also reports that Apple is developing a new budget MacBook (internal codename J700) aimed at students and the mass market. This would be Apple's first truly low-cost laptop, positioned to compete against lower-priced Windows and ChromeOS devices.

The release is scheduled for the second half of 2026, alongside refreshed MacBook Pro and Mac Studio models built on M5 and M6 chips. The device will resemble a MacBook Air, but use a simplified construction and more cost-efficient materials, enabling Apple to finally compete in the education-focused computing segment, where it has long trailed Microsoft and Google.

The new MacBook is expected to arrive late 2026 or early 2027.