Apple (AAPL) and Musk’s Starlink to Compete over Satellite Spectrum
Tech giant Apple (AAPL) is reportedly emerging as a potential rival to Elon Musk’s Starlink in the expansion of its satellite communication services. According to the Wall Street Journal, Apple and Starlink are competing for spectrum rights—limited airwaves essential for transmitting phone signals. Meanwhile, Musk has reportedly lobbied federal regulators to delay Apple’s efforts to grow its satellite network.
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In context, Starlink is a wholly owned division of Musk’s aerospace company SpaceX, that is dedicated to providing worldwide mobile broadband coverage.
Apple vs. Musk
Apple is competing with Starlink to eliminate cellphone dead zones using satellite technology. Moreover, both companies are vying for limited spectrum rights to expand their capabilities in this space.
Citing sources, Wall Street further reported that the tension between Apple and SpaceX escalated recently when SpaceX and its partner, T-Mobile (TMUS), approached Apple to integrate Starlink with iPhones. Both sides eventually reached a deal, allowing the upcoming SpaceX-T-Mobile satellite phone service, launching this summer, to work with newer iPhones. However, Apple still tightly controls its closed software ecosystem.
Apple and Starlink Can’t Ignore Each Other
Apple is ramping up investments in satellite-powered communication that keeps users connected in areas lacking traditional wireless coverage. Meanwhile, Musk’s SpaceX has deployed over 550 satellites to offer cellphone connectivity through its Starlink service.
Interestingly, expanding connectivity in remote areas could boost iPhone sales or increase adoption of SpaceX’s Starlink service. In many ways, the companies rely on each other to advance their strategies. Notably, Apple’s satellite partner, Globalstar (GSAT), has enlisted SpaceX to launch satellites supporting iPhone connectivity. At the same time, SpaceX and T-Mobile depend on Apple to ensure seamless integration of their service with iPhones.
Is Apple a Good Stock to Buy Right Now?
Turning to Wall Street, AAPL stock has a Moderate Buy consensus rating on TipRanks based on 17 Buys, 11 Holds, and four Sells assigned in the last three months. The average Apple share price target of $249.88 implies a 15% upside potential.
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