Summary
SpaceX is preparing a suite of commercial moves to expand its Starlink operations, according to people familiar with the company's strategy. The initiatives under consideration include developing a mobile device that connects to Starlink's satellite network, extending Starlink internet directly to smartphones on cellular networks, and offering a space-traffic monitoring service that leverages sensors on Starlink satellites. These steps come as Starlink has become the principal revenue source for SpaceX and as the company positions itself for an anticipated initial public offering this year.
Starlink hardware and services under consideration
Executives at SpaceX are exploring building a mobile device that would attach directly to the Starlink satellite constellation, according to multiple people familiar with the plans. Details about the handset's design and timing remain unclear, but the company has previously pursued partnerships to route Starlink internet to phones and has now discussed making its own device.
In public comments on the social platform X, the company's chief executive acknowledged the idea as a possibility, replying to a user that a Starlink phone was "Not out of the question at some point." He added that such a product "would be a very different device than current phones," specifying it would be "optimized purely for running max performance/watt neural nets," a reference to hardware used to run artificial intelligence workloads.
SpaceX has worked with at least one major wireless carrier in prior efforts to bring Starlink connectivity into mobile handsets on that network, which differs from building a handset itself. The company has also taken steps on the intellectual property and technical fronts relevant to handset and mobile connectivity ambitions: it filed to trademark "Starlink Mobile" late last year and submitted patents earlier this year for technologies intended to improve Starlink's links with small, moving devices on land beyond traditional Starlink user terminals.
Starlink's role in SpaceX finances
Starlink now stands as a vital profit generator inside SpaceX. Sources familiar with the firm's financials estimate that last year SpaceX posted roughly $8 billion in profit on $15 billion to $16 billion in revenue, with Starlink accounting for the majority of those sales. Estimates place Starlink's contribution in a range from about 50% to as much as 80% of total revenue, making the satellite broadband business central to SpaceX's commercial case.
To support mobile-focused ambitions, SpaceX made a major spectrum acquisition last year when it paid $19.6 billion for satellite spectrum from EchoStar. That purchase represents a significant investment in cellular-capable spectrum for satellite-delivered services. While some industry participants view such moves as potentially competitive with Mobile Network Operators, SpaceX has largely presented its efforts as complementary to existing carrier networks.
Still, not everyone expects an easy path for a SpaceX handset. Armand Musey, president of Summit Ridge Group, said it could be difficult for Starlink to build a phone that other mobile operators would accept, noting the challenge of competing with incumbent mobile network operators that could be reluctant to rely on a rival's hardware or services.
Direct-to-device and constellation buildout
SpaceX has already placed hundreds of satellites tuned toward direct-to-device scenarios. About 650 of the Starlink satellites currently in orbit were manufactured to support the fledgling direct-to-device business. The longer-term objective, as described by SpaceX's leadership, is to expand capability until the company can "deliver full cellular coverage everywhere on Earth."
Realizing that capacity depends in part on SpaceX's heavy-lift Starship rocket. The company says each future Starship launch carrying Starlink payloads will multiply the constellation's capacity by more than 20 times, enabling satellites with upgraded power to deliver expanded services to smaller and moving devices, including mobile phones.
Analysts tracking the market for direct-to-device services see a potentially large opportunity in coming years, with the market still early but judged to be worth billions of dollars. SpaceX's recent patent filings and trademark application align with preparing the technical and commercial framework to pursue that market.
Stargaze - space traffic monitoring
In addition to consumer-facing connectivity plans, SpaceX last week announced a product called Stargaze. The offering will use small maneuvering cameras already integrated into many Starlink satellites to observe and track activity in low-Earth orbit, a portion of space that hosts rapidly growing satellite traffic and where international norms for traffic management are not fully established.
SpaceX indicated it will make some of the tracking data available at no cost to satellite operators, while other aspects of the business could be of interest to U.S. government entities seeking more robust space situational awareness. The Pentagon and the civil Office of Space Commerce are among federal organizations enhancing their space-tracking capabilities and working with both startups and established operators.
Concerns have been raised inside the space-tracking community about the potential for key government systems to depend too heavily on a commercial provider that also operates a large satellite constellation. Richard DalBello, the former head of the Office of Space Commerce, observed that Stargaze could offer rapid space-tracking for low-Earth orbit systems but cautioned that government reliance should not be exclusive.
Strategic context and market implications
Collectively, the handset, direct-to-device connectivity and space-tracking initiatives signal a push by SpaceX to convert industrial-scale satellite deployment into broader revenue streams. The initiatives build on an accelerated satellite production line and the company's reusable rocket program, both of which are cited by sources as central enablers for the expanded Starlink business.
How quickly these offerings materialize and how they are received by governments, military customers and commercial carriers remain open questions. The technical ramp - in particular the reliance on upgraded satellites launched by Starship - will be a critical enabler for the mobile and direct-to-device ambitions.
Conclusion
As SpaceX prepares for what many expect to be an attempt at an initial public offering, Starlink's evolving product mix appears intended to broaden the unit's addressable market and fortify revenue generation. The company is moving beyond a simple satellite broadband provider toward a multi-pronged business that targets consumer devices, carrier partnerships and space-domain services, while industry observers weigh the trade-offs of increased commercial influence over critical space-tracking capabilities.