Will Starlink Mobile matter for Apple? Simon Mugo Fri, October 16, 2026 at 9:09 PM EDT 2 min read SPCX -1.74% AAPL +0.43% ECHO -1.70% TSLA -2.13% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Investing.com -- Starlink Mobile could challenge Apple's (NASDAQ) iPhone sales model by disrupting US carrier subsidies, although the near-term earnings impact appears limited, according to Bank of America.
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In an October 12 research note, analysts led by Wamsi Mohan examined how SpaceX's expansion into mobile connectivity could affect Apple's pricing power and premium smartphone sales.
SpaceX recently agreed to acquire Grain Management's nationwide 800 MHz spectrum portfolio, complementing approximately $17 billion in spectrum purchases from EchoStar.
The company also secured regulatory approval for a 15,000-satellite constellation and permission to offer mobile services without a terrestrial carrier partner.
The analysts identified three potential risks for Apple: disruption to carrier subsidies, competition from a hypothetical SpaceX smartphone, and integration of Tesla, SpaceX, and Grok AI services.
Approximately 53 million iPhones are sold annually through America's three largest carriers, with average promotional credits of around $800 per device.
These subsidies help sustain demand for premium models and encourage customers to upgrade regularly.
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A 10% migration of major carrier subscribers to Starlink Mobile could cost Apple approximately five million iPhone sales and $6 billion in revenue, the research estimated.
However, the larger concern involves Apple's valuation, particularly whether reduced subsidies could weaken US iPhone pricing power and premium-device demand.
Existing carriers could initially increase promotions to retain subscribers, supporting iPhone upgrades.
Starlink Mobile's compatibility with existing smartphones means customers switching networks could continue using iPhones rather than purchasing competing devices.
Apple could also expand direct sales through its stores and financing programmes, while lower wireless bills might leave consumers with more money for hardware and services.
Significant competitive effects are unlikely before fiscal 2028, given SpaceX's infrastructure rollout and pending regulatory approvals.
The bank maintained its Buy rating on Apple with a $370 price target, citing opportunities in AI-powered devices and continued shareholder returns.
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