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SpaceX loses $1,000 on each Starlink internet antenna

Despite charging $499 for a Starlink antenna, SpaceX still loses approximately $1,000 in the sale of each unit of equipment. The company’s president, Gwynne Shotwell revealed, on Tuesday (06), that initially $3 thousand were spent on the production of each antenna, it decreased to $1,500 with the evolution of the process. They currently have a lower manufacturing cost of $ 1,300, in a newly launched version.

The expectation of the company is to make these costs fall even more. The executive estimates that the equipment can be manufactured for “a few hundred” dollars in up to two years. A reduction in this factor can be decisive to make the antenna more accessible for those on a tight budget.

During a virtual panel on Tuesday, Shotwell said that SpaceX does not plan to offer “different pricing”, based on different levels of service, for its satellite internet.

“We will try to keep [the service] as simple and transparent as possible, so now, there are no segmentation plans for consumers,” he explained.

SpaceX Starlink antenna

SpaceX Starlink antenna (Image: ArtStation)

In addition to the high cost to manufacture the antennas, SpaceX is at a time of extensive spending on the construction and launch of satellites responsible for transmitting data from Starlink.

In February, the CEO Elon Musk commented on the scenario:

“SpaceX needs to go through a deep abyss of negative cash flow during the next year or thereafter to make Starlink financially viable. Each new satellite constellation in history has failed. We hope to be the first ones who don’t.”

Currently, Starlink already has more than 1,300 satellites in orbit. A public beta version of the service has been launched in the United States, Canada, the United Kingdom, Germany and New Zealand.

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