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Why would Apple not be able to buy Falcon 9 launches? SpaceX is in the business of selling rocket launches.
by waiseristy 7y ago
Why would Apple not be able to buy Falcon 9 launches? SpaceX is in the business of selling rocket launches.
- kjksf 7y agoThey could but I'm guessing SpaceX margins on rocket launches are ~50% (to make it economical in the face of risk of blowing up billion-dollar payloads). Which means that if Apple pays $60 million for a single launch, it costs SpaceX $30 million to do it. Or to put it differently: if Apple was competing with SpaceX, then every Apple launch would sponsor one SpaceX launch. With those economics, it would be hard for Apple (or anyone else) to compete with SpaceX in this business. All else being equal, their cost to create the satellite network would be substantially bigger which means they would have to charge more or have much lower margins and profits than SpaceX.