- ESSENTIAL POINTS
- According to a company executive on Wednesday, SpaceX is no longer covering the cost of the Starlink antennas it sells along with its satellite internet service.
- “We were subsidizing terminals, but we’ve been iterating on our terminal production so much that we’re no longer subsidizing terminals, which is a good place to be,” Jonathan Hofeller, SpaceX vice president of Starlink and commercial sales, said during a panel at the World Satellite Business Week conference.
- User terminals, commonly referred to as consumer Starlink antennas, are available from SpaceX for $599 apiece.
PARIS – According to a business executive on Wednesday, Elon Musk’s SpaceX is no longer covering the cost of the Starlink antennas it sells along with its satellite internet service, which is an important step in the firm boosting its profitability.
We were subsidizing terminals but we’ve been iterating on our terminal production so much that we’re no longer subsidizing terminals, which is a good place to be,” User terminals, commonly referred to as consumer Starlink antennas, are available from SpaceX for $599 apiece. SpaceX sells antennas with its service in the range of $2,500 to $150,000 apiece for Starlink clients who have higher standards, such as mobile, marine, or aviation users.
Starlink “had a cash flow positive quarter” in 2022, according to earlier this year’s statement by SpaceX President and COO Gwynne Shotwell. According to reports, the entire corporation made money in the first quarter of 2023.
Although SpaceX was established more than 20 years ago and is currently valued at around $150 billion, its rocket, spaceship, and satellite businesses require a lot of funding. Musk claimed in 2021 that Starlink would have to pass through “a deep chasm of negative cash flow” before it could become “financially viable.”
According to a statement made by SpaceX President and COO Gwynne Shotwell earlier this year, Starlink “had a cash flow positive quarter” in 2022. The entire firm reportedly turned a profit in the first quarter of 2023, according to reports.
Despite having been active for more than 20 years and having a market cap of almost $150 billion, SpaceX’s rocket, spacecraft, and satellite businesses need a lot of cash. Starlink, according to Musk in 2021, would need to overcome “a deep chasm of negative cash flow” before it could become “financially viable.”
We’re still going strong and launching twice a week, which is crazy, said Hofeller.
Earlier on Wednesday, cruise ship communications services provider Starlink and European satellite operator SES jointly announced a collaboration to provide their services to this sector. SES CEO Ruy Pinto stated that the firms want to expand upon the current relationship with future market offers.
According to a study from May, SpaceX has more than 1.5 million Starlink users globally. Hofeller did not, however, present an updated number during the meeting. He did remark that the number of users has crossed 1.5 million and that the firm wants to keep growing. This statistic includes both consumer and business clients.
To date, SpaceX has launched over 5,000 Starlink satellites and counting
More than 5,000 Starlink satellites have been safely launched by SpaceX so far, and the company is still adding new ones on a regular basis. In fact, Hofeller bragged that the business was now successfully launching satellites twice weekly, illustrating the quick pace of their business.
Unrelated to this development, Starlink and European satellite operator SES have partnered to jointly market their communication services to cruise liners. The cruise market sector, which is presently being served by both businesses, will be the emphasis of this partnership. Ruy Pinto, CEO of SES, expressed hope for future growth of the alliance and joint exploration of new market prospects.
Overall, SpaceX’s decision to discontinue covering the cost of Starlink antennas is a testament to the company’s commitment to attaining long-term financial success. SpaceX’s Starlink project is positioned for further success in the satellite internet industry because to a rising user base, frequent satellite launches, and tactical alliances.
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