Space Exploration Technologies Corp. (NASDAQ: SPCX) has agreed to purchase a nationwide portfolio of low-band spectrum from Grain Management, a move the company states will allow Starlink to function as a major mobile carrier in the United States. The low-band spectrum is intended to improve signal penetration, providing reliable service indoors, outdoors, and in dead zones.
Investor Gene Munster believes that this infrastructure could eventually lead to the creation of a SpaceX smartphone. Munster, managing partner at Deepwater Asset Management, stated on X that he believes SpaceX will eventually build a phone, despite CEO Elon Musk’s past comments against the idea. Munster argued that a vertically integrated handset on a Starlink network could offer features carriers cannot match and cheaper service.
Munster suggested that such a device would pose a larger competitive threat to Samsung Electronics than to Apple Inc. (NASDAQ: AAPL). He noted that Apple’s strong tie-in between devices and services makes it harder to disrupt, whereas Samsung holds a 23.52% global market share compared to Apple’s 30.8% as of September.
Elon Musk previously stated at a 2024 town hall that the idea of making a phone makes him want to die, though he added that if forced, SpaceX would make one. He also mentioned earlier this year that a phone might be developed in the future but would be a very different device focused on running AI neural networks at maximum performance per watt.
On Thursday, shares of SpaceX closed 4.19% lower at $160.57. The stock gained 2.32% in extended trading to reach $164.30.
