Google (ASTS/SpaceX) and Apple (Globalstar) in this interstellar competition: an analysis of technological strengths and economic moats ð
Googleâs cost model: equity leverage + revenue sharing, representing a strategic investment (Equity) in ASTS. ASTSâs business model involves a 50/50 revenue-sharing agreement with telecom operators (AT&T, Verizon, Vodafone).
Advantages: Google does not bear the full depreciation of satellites. Through system-level support on Android (Android 15/16), it positions ASTS as a âspace base stationâ for telecom operators. Google profits from the prosperity of the ecosystem and potential data traffic, rather than mere communication fees.
Apple must continuously fund the satellite launches and maintenance for Globalstar. This is considered a service operating cost beyond the iPhone BOM (Bill of Materials).
Risk: Globalstarâs satellite constellation is relatively old and has limited bandwidth. Upgrading it to support voice/data would require Apple to invest billions of dollars to rebuild the entire constellation, resulting in extremely high marginal costs.
ð€ Betting on GOOGL + SpaceX + ASTS as top picks.
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