Gene Munster: Elon Musk may “eventually” build a smartphone as Starlink spectrum plans could pressure Apple and Samsung

Gene Munster, an investor and analyst known for tech coverage, said he expects Elon Musk to “eventually” build a phone, linking the idea to SpaceX’s satellite network and its recent move to secure more spectrum for nationwide wireless services. In remarks reported by Yahoo Finance, Munster argued that a Starlink-enabled device could become a “bigger problem” for major smartphone vendors such as Apple and Samsung than many investors currently anticipate.

The comments come against the backdrop of SpaceX’s agreement to buy nationwide low-band spectrum, according to the same report. Low-band spectrum is prized in cellular networks because it can carry indicates over longer distances and through buildings more effectively than higher-frequency bands, which can improve coverage. The report frames the spectrum step as a foundation for Starlink-linked consumer connectivity, even if the path to a full consumer handset is not immediate.

Munster’s thesis is also tied to an apparent tension between what Musk has said and what the analyst expects. Musk has been quoted as not wanting to make a smartphone, yet Munster still believes a phone could follow later. The distinction matters because smartphone manufacturing and distribution are materially different from connectivity devices and service plans, and investors tend to discount “later” products unless they see operational milestones.

The implications for Apple are straightforward even without new Apple disclosures. Apple’s iPhone business depends on a tightly controlled device ecosystem, carrier relationships, and cellular performance expectations. If satellite connectivity becomes integrated into mainstream devices at scale, competitive pressure could shift from pure hardware specifications to service experience, network availability, and pricing offers bundled with connectivity.

Apple did not issue an on-the-record response in the Yahoo Finance report, and the story does not cite any Apple action tied directly to SpaceX’s spectrum deal or Munster’s comments. Without company statements or regulatory filings referenced in the report, it is not possible to determine whether Apple sees any near-term competitive threat or is actively pursuing countermeasures in satellite-linked connectivity.

Sector context adds to why the debate is landing now. In recent years, telecommunications and consumer electronics companies have explored alternative connectivity paths, including satellite partnerships and expanded direct-to-device ambitions. Analysts have increasingly focused on how quickly satellite services can move from niche use cases, such as emergency connectivity or remote coverage, into everyday coverage that can influence consumer buying decisions.

A key caveat is that the report, as characterized in the available materials, centers on analyst expectation rather than confirmed product timelines from SpaceX or Musk. It also does not provide technical details on what “a Starlink device” would be, whether it would be a standalone gadget, a connectivity add-on, or a handset, or how spectrum would be used at the consumer level. Until more specific disclosures appear, the timing and exact competitive impact for Apple and Samsung remain speculative.

For Apple watchers, what to watch next is clarity: any SpaceX public updates on how it plans to deploy the acquired spectrum, any regulatory progress that indicates deployment timelines, and any product announcements that translate Starlink connectivity into mass-market device formats. On Apple’s side, the relevant tell would be whether it highlights alternative connectivity features, partnership changes, or investment in network-adjacent capabilities that could reduce exposure to satellite-enabled competition.