SpaceX is developing plans for a Starlink-connected mobile device and expanded satellite services ahead of an expected IPO this year, according to sources familiar with the matter.
The device would differ from standard smartphones, with Musk suggesting on X it would be "optimised purely for running max performance/watt neural nets." Musk later posted "we are not developing a phone," though sources maintain the plans exist. Specifics on design and timeline remain unclear.
This is separate from SpaceX's existing work with T-Mobile to deliver Starlink internet directly to phones on that network. The T-Mobile partnership, which launched commercially in July 2025, uses satellites as space-based cell towers to connect standard LTE devices without special hardware.
Starlink generated roughly 50 to 80 percent of SpaceX's $15-16 billion revenue last year, according to two sources. The company reported about $11.5 billion in profit. With 9 million users and government contracts through Starshield, Starlink is SpaceX's primary revenue driver.
The real question is whether SpaceX can compete directly with mobile carriers while maintaining partnerships with them. "It will likely be hard for Starlink to make a phone and compete with the MNOs," said Armand Musey of Summit Ridge Group. "The other MNOs would avoid using it."
SpaceX's $19.6 billion purchase of satellite spectrum from EchoStar last year signals serious cellular ambitions. The company has partnerships with Telstra and Optus in Australia, T-Mobile in the US, and carriers in Japan and Canada.
For enterprise buyers evaluating satellite connectivity, three things to watch: pricing details when they emerge, integration with existing mobile infrastructure, and whether SpaceX's device strategy remains complementary or becomes competitive with carrier partners. History suggests carrier relationships matter more than hardware capabilities in this market.
Starlink recently cut its Roam Unlimited plan from $165 to $100 monthly and added a 50GB tier at $50 monthly. The company added 4.6 million subscribers in 2025 while improving speeds by over 50 percent.