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

Technology investor Gene Munster has predicted that Elon Musk will "eventually" release a phone, arguing that a Starlink-powered device could pose a bigger threat to Apple and Samsung than markets currently anticipate.

The comments come as Musk's SpaceX pushes further into the U.S. mobile market, reportedly acquiring nationwide low-band spectrum to support a cell phone network built around its Starlink satellite system.

Low-band spectrum is particularly valuable because it travels long distances and penetrates buildings more easily than higher-frequency signals, making it well suited for broad, direct-to-device coverage, including in areas that legacy carriers struggle to reach.

The prospect of SpaceX entering the cell service market directly has rattled investors in traditional telecom firms. Verizon shares suffered their steepest single-day decline since 2002, reflecting concern that satellite-based competition could erode its customer base.

Other major carrier stocks were also pressured as the news spread, underscoring how seriously markets are weighing the disruptive potential of Starlink's expansion plans.

Munster's remarks add another layer to speculation about Musk's long-term ambitions. While SpaceX has focused primarily on satellite connectivity rather than hardware, Munster suggests a Musk-branded phone is a logical extension, one that could eventually compete directly with established device makers.

For now, SpaceX's concrete step is the acquisition of spectrum, a necessary building block for any nationwide network. Whether this evolves into a consumer phone remains speculative, but the market reaction suggests investors are already pricing in significant disruption to the traditional telecom and smartphone industries.

Analysts will likely watch closely for further signals from SpaceX regarding its network rollout, as well as any hints about hardware ambitions that could validate Munster's prediction.