Yes, Starlink internet prices will probably drop at some point, but when that might happen is anyone’s guess.

The Production Costs are Going Down

SpaceX President Gwynne Shotwell has said the company is going to be cutting the cost of making the satellite dish terminal in half later this year, and they believe they can cut costs in half again after that. Right now, the terminals cost about $1300 to produce. Since they are current selling the Starlink satellite dish to customers for $499, this means that they’ve been selling them at a huge loss. If SpaceX can lower the cost of making the dishes as much as they want to, that would still leave the cost at around $325.

Will Reduced Costs Result in Lower Prices?

If the cost to make a Starlink satellite dish terminal drops all the way $325, it would allow SpaceX to lower the price is charges customers, but it would also present an opportunity to increase profits. Since the satellite dishes have been sold at a loss up to this point, it would be surprising if the price dropped right away. It makes sense for SpaceX to recover some of their losses by maintaining the price with reduced cost. But that is only one way to look at it.

They still may decide to drop the price right away in order draw additional customers who stayed away due to the high up-front cost of Starlink internet. If that’s the case customers may get to see Starlink prices drop sooner than expected.

How Far Could the Price Drop?

It is only speculation at this point, but it is probably unlikely that Starlink would continue to sell the dish terminals for less than they cost to make. So, the price going below $300 isn’t something anyone should expect to see. If the price does drop, somewhere around $400 would be a more reasonable guess. But it's still just a guess.

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