SpaceX isn’t just launching rockets anymore. According to Reuters, the company’s preparing to enter the smartphone market with a Starlink-branded device that connects directly to its satellite constellation. Three sources familiar with the matter told the outlet that internal planning for a phone product has been underway for years, now it’s moving toward reality as SpaceX eyes an IPO later in 2025.
Elon Musk hasn’t officially confirmed the project yet. However, he recently responded to concept renders circulating online, suggesting the device wouldn’t resemble conventional smartphones, SpaceX files Starlink mobile trademark for new cellular service. Instead, it would prioritize running deep neural networks with maximum performance and minimal energy consumption. That’s a departure from today’s app-heavy devices, and signals SpaceX’s interest in AI-first hardware rather than another iPhone competitor.
The company already operates more than 650 satellites supporting direct-to-cell technology through its partnership with T-Mobile. A dedicated Starlink phone could leverage that infrastructure while bypassing traditional cellular towers entirely. SpaceX plans to expand global coverage through additional Starship launches, potentially offering connectivity in regions where terrestrial networks don’t reach.
Here’s the business angle: Starlink generated 79% of SpaceX’s total revenue in 2025, hits 9M customers with record growth. Satellite internet division brought in approximately $15-16 billion and contributed roughly $8 billion in profit. From a financial perspective, SpaceX operates primarily as a satellite communications company, rocket launches constitute a smaller revenue share than many assume.
Introducing a Starlink phone extends that revenue model. It creates another touchpoint for customers already subscribed to satellite internet services and opens new markets for direct-to-satellite mobile connectivity. The company’s also launching complementary services like Stargaze, an orbital tracking platform, to diversify its satellite operations further.
Competitors like AST SpaceMobile saw their stock react positively to the news, viewing it as validation for the satellite-to-phone market. Still, skeptics question whether satellite bandwidth can support mass-market smartphone usage and what pricing structure would make a Starlink phone commercially viable.
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