Investor Says Musk Will ‘Eventually’ Make a Phone as SpaceX Moves Into Cell Service

Investor Gene Munster has said that Elon Musk will "eventually" make a phone. Musk already owns SpaceX, which runs the Starlink satellite internet service.

Munster believes a Starlink phone device could become a "bigger problem" for Apple and Samsung than people currently expect. Apple and Samsung are the world's leading smartphone makers.

This prediction comes as SpaceX moves to build a nationwide cell phone network in the United States. The company is reportedly buying low-band spectrum across the country.

Spectrum is the range of radio signals that phone companies need in order to send calls, texts, and data. Owning low-band spectrum would let SpaceX offer wide mobile coverage, including in rural areas where regular networks are weaker.

News of SpaceX's plans has already shaken the telecom industry. Verizon, one of the biggest U.S. cell providers, saw its stock drop sharply. It was the company's worst trading day since 2002.

Other cell carrier stocks also fell as investors reacted to the threat of new competition from SpaceX. Many worry that a Musk-backed phone network could pull customers away from traditional providers.

If SpaceX eventually launches its own phone, as Munster predicts, it could challenge not just phone networks but also device makers like Apple and Samsung. For now, SpaceX's main step is building out its network using the spectrum it is acquiring.