Apple Reportedly Teams Up With Elon Musk’s SpaceX, T-Mobile For Satellite iPhone Connectivity, Stock Falls On Downgrade: Retail Retains Bullish Bias

Apple, Inc. (AAPL) is reportedly eyeing a satellite network collaboration with Elon Musk-owned SpaceX unit Starlink and telecom company T-Mobile U.S., Inc. (TMUS).

Prominent Apple leaker and Bloomberg columnist Market Gurman said the companies have been testing iPhones with Starlink service in an effort to provide an alternative to Apple’s in-house satellite communication service.

Gurman said the rumored development comes as a surprise as T-Mobile previously said it is testing Starlink as an option only for Samsung’s phones such as the Z Fold and S24 models. 

On the other hand, Apple currently offers Globalstar, Inc.’s (GSAT) service to let its consumers send texts and contact emergency responders when out of cellular range.

In mid-December, T-Mobile opened registration for a direct-to-cell satellite service beta test with Starlink. The companies seek to eliminate dead zones by providing coverage for the 500,000 square miles of land in the United States not covered by earth-bound cell towers.

The Bloomberg report said T-Mobile enabled a small number of iPhones as part of a beta test. When the T-Mobile iPhone is in an area without cellular connectivity, devices that are part of the Starlink program will first try to pair up with SpaceX satellites. 

Gurman added that iPhone users will also have the option to activate texting via the satellite menu for the Globalstar service or contact emergency services through Apple.

The Starlink satellite connectivity currently allows texting only, although SpaceX and T-Mobile have hinted at expanding the service to data connections and voice calls in the future. 

Apple stock slipped in the pre-market session, down 1.20% at $235.40, following two sessions of strong gains. 

Traders looked to take some profits ahead of Wednesday’s Federal Reserve rate decision and Apple’s earnings due after the market closes on Thursday.

The stock also took a hit from Oppenheimer’s downgrade of the stock's rating to ‘Perform’ from ‘Outperform' and removal of the price target as the firm stepped to the sidelines. 

The re-rating followed the brokerage cutting its earnings per share (EPS) estimate for fiscal year 2026, which is currently below the consensus, TheFly reported.

The muted opinion is premised on stronger competition in the Greater China region and a lack of compelling Apple Intelligence and generative artificial intelligence (genAI) apps that can accelerate near-term device replacement.

AAPL sentiment and message volume January 29, premarket as of 8:16 am ET | Source: Stocktwits

On Stocktwits, retail sentiment toward Apple stock stayed ‘bullish’ (69/100), with message volume at ‘high’ levels.

Some stock watchers on the platform largely ignored the most recent downgrade snagged by Apple stock.

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