A new report from The Information on Thursday suggests that Elon Musk’s SpaceX (PC:SPXEX) may soon provide satellite connectivity for tech giant Apple’s (AAPL) iPhones. According to the report, SpaceX has started designing its next-generation satellites to support the same radio spectrum currently used by Apple’s satellite features, which are powered by Globalstar (GSAT). Starlink, SpaceX’s satellite internet division, expects this new satellite network to be operational within a few years.
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It is worth noting that Apple has historically had a rocky relationship with Musk’s companies. However, as Globalstar’s network ages and Starlink improves, Apple may have reasons to consider working with SpaceX. Meanwhile, Globalstar’s chairman, James Monroe, has reportedly discussed the idea of selling the company for over $10 billion. This news helped boost Globalstar shares during the current trading session.
Nevertheless, although Apple has the right to buy Globalstar before it sells to another buyer, the report says that it’s unlikely to do so. Indeed, sources told The Information that Apple does not want to become a telecom provider or face the regulations that come with that role. Analysts noted that with Musk now having access to EchoStar’s (SATS) satellite spectrum, it’s becoming harder for companies to avoid partnering with SpaceX.
Is Apple a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 20 Buys, 12 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $260.40 per share implies that shares are trading near fair value.
