# SpaceX No Longer Subsidizing Starlink Antennas
In a significant move towards boosting profitability, Elon Musk’s SpaceX has ceased the subsidization of Starlink antennas sold with its satellite internet service, a company executive announced on Wednesday. Jonathan Hofeller, SpaceX vice president of Starlink and commercial sales, made the announcement during a panel at the World Satellite Business Week conference.
## Cost-Effective Starlink Antennas
Starlink antennas, known as user terminals, are sold to consumers for $599 each by SpaceX. The company also offers antennas with its service to more demanding customers such as mobile, maritime, or aviation users at prices ranging from $2,500 to $150,000 each.
Previously, SpaceX leadership had revealed that the terminals initially cost about $3,000 each to manufacture. However, by early 2021, the company had managed to reduce the manufacturing cost to about $1,300 per terminal. Hofeller’s recent announcement indicates that the terminals now cost less than $600 each to make, thanks to mass production savings, a factor he attributes as “one of our keys to success.”
## SpaceX’s Financial Performance
SpaceX’s President and COO, Gwynne Shotwell, had earlier revealed that the Starlink division saw a “cash flow positive quarter” in 2022, and the overall company reportedly turned a profit in the first quarter of 2023. Despite being valued at about $150 billion and having been founded over two decades ago, SpaceX’s businesses of rockets, spacecraft, and satellites are capital intensive. Elon Musk had previously stated that Starlink was navigating “a deep chasm of negative cash flow” before it could become “financially viable.”
As of May, SpaceX had reported that it had approximately 1.5 million customers globally for its Starlink service. Although Hofeller did not specify the current total, he indicated that the user base was “well over” the 1.5 million mark. The figure includes both consumer and enterprise customers worldwide, which the service aims to “grow to hopefully millions and millions.”
## SpaceX’s Satellite Launches & Partnerships
To date, SpaceX has launched over 5,000 Starlink satellites and continues to do so. “We’re going strong, we’re launching twice a week now – which is insane,” Hofeller said.
Earlier in the week, European satellite operator SES announced a partnership with Starlink to jointly sell their communication services to cruise ships, a market both companies currently serve. SES CEO Ruy Pinto expressed that both companies expect to build upon this arrangement with later market offerings.
Original Story at www.cnbc.com – 2023-09-13 14:23:39
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