SpaceX phone could challenge Samsung more than Apple, investor Gene Munster says

# Gene Munster Predicts SpaceX Could Eventually Launch Its Own Smartphone

Investor Gene Munster believes SpaceX could eventually develop its own smartphone, despite CEO Elon Musk previously indicating that the company has no plans to enter the handset business. Munster’s prediction follows SpaceX’s agreement to acquire nationwide low-band wireless spectrum, a move that could strengthen its ambitions to expand Starlink’s satellite-based mobile connectivity across the United States.

“Elon says he doesn’t want to make a phone. I still think $SPCX eventually will,” Munster wrote in a post on X on Thursday. He argued that combining a proprietary handset with Starlink’s mobile network could create a distinctive offering for consumers, potentially providing features that conventional wireless carriers struggle to match and reducing the cost of mobile service.

“A vertically integrated handset on a Starlink mobile network could deliver features carriers can’t match, and cheaper service,” Munster added. His comments suggest that SpaceX could eventually explore a strategy similar to those of technology companies that integrate hardware, software and connectivity into a unified ecosystem.

Munster also suggested that a potential SpaceX smartphone could pose a greater competitive threat to Samsung Electronics than to Apple. He argued that Apple’s close integration of its devices and services makes its customer ecosystem more difficult to disrupt, potentially leaving other handset manufacturers more exposed to competition from a new entrant.

The speculation comes as SpaceX expands its wireless spectrum holdings, a development that could help the company improve Starlink Mobile’s performance and extend connectivity beyond traditional satellite coverage. Although Musk has emphasized the importance of the spectrum acquisition, he has not confirmed plans to manufacture a smartphone.

Musk recently announced that SpaceX had agreed to acquire spectrum in the 800 MHz band, describing the transaction as a major milestone in the company’s efforts to deliver satellite-based cellular connectivity throughout the United States.

“This is the last critical piece of the spectrum puzzle,” Musk wrote on X, responding to a post by Tesla investor and social media influencer Sawyer Merritt. Merritt said the acquisition would help provide better indoor coverage and allow signals to penetrate walls and other obstacles more effectively. Musk added that the spectrum would help SpaceX deliver “complete phone coverage in America.”

Musk also responded to comments from investor Chamath Palihapitiya, host of the “All-In Podcast,” who described the acquisition as a significant development. “This is a very big deal,” Palihapitiya wrote.

“To the casual observer, this won’t seem like much,” Musk replied. “To those who understand the spectrum wars, it’s an earthquake.”

The 800 MHz band is classified as low-band spectrum, which generally allows wireless signals to travel longer distances and penetrate buildings more effectively than higher-frequency signals. These characteristics could help Starlink Mobile improve connectivity in locations where conventional wireless signals are weak, including indoor environments.

SpaceX has agreed to acquire a nationwide portfolio from Grain Management containing up to 14 MHz of paired spectrum in the 800 MHz band. The company said the low-band frequencies would complement its existing 2 GHz spectrum holdings and support Starlink Mobile’s ability to connect devices inside buildings.

The acquisition is part of SpaceX’s broader effort to build a satellite-based mobile communications service that can work with existing devices. Rather than relying exclusively on traditional cellular towers, Starlink Mobile aims to use satellites to extend connectivity to areas that terrestrial networks may struggle to reach.

The Federal Communications Commission recently approved SpaceX’s deployment of 15,000 Starlink Mobile satellites for mobile satellite services. The agency also said SpaceX would not need to enter into leasing agreements with terrestrial carriers to provide the service, according to the reported regulatory decision.

The development could give SpaceX greater flexibility in expanding its satellite communications network, although the practical reach and performance of its service will depend on spectrum availability, technology and applicable regulatory requirements.

Traditional telecommunications operators remain cautious about SpaceX’s ambitions. AT&T CEO John Stankey has raised concerns about regulatory obstacles and technological limitations associated with satellite-based cellular services. SpaceX could also use technologies such as femtocells, small cellular base stations designed to improve coverage inside buildings, to complement its broader connectivity strategy.

A potential smartphone would represent a further step beyond SpaceX’s existing satellite infrastructure and mobile connectivity plans. By controlling both the handset and the network, the company could theoretically optimize how devices connect to satellites and introduce features tailored to its own service. However, manufacturing phones would also place SpaceX in direct competition with established consumer electronics companies and require significant investment in hardware development, distribution and customer support.

For now, Munster’s prediction remains speculation rather than a confirmed product plan. SpaceX’s spectrum acquisition and Starlink Mobile expansion provide the context for his forecast, but Musk has not announced a smartphone launch. The company’s immediate focus remains on expanding satellite-based connectivity, while its longer-term ambitions in the mobile market remain uncertain.