Making a headline that's more at home in a James Bond movie rather than on our blog, the biggest company in the world is covertly working on a secret satellite project. Bloomberg has reported that Apple (NASDAQ: AAPL) has created a secret team that is working on sending data from satellites directly to its devices.
Company insiders have said that the project aims to deliver results within 5 years, although they provided little else in the way of specifics. The clear direction and use of satellites has not been decided on, with the anonymous Apple employees stating that the project could yet be abandoned, although CEO Tim Cook has stated the move to space is a company priority.
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If Apple's secret satellite project turns out to be a success, it would alleviate the company's dependence on wireless carriers, with the satellites sending data directly to its innumerable collection of devices. Other potential benefits include the creation of a non-traditional network for its products and improved location tracking for Apple maps. It's not yet clear if they would follow Amazon (NASDAQ:AMZN) in creating their own constellation of satellites or concentrate on technology that would connect to existing satellites.
Apple joins Facebook (NASDAQ: FB), Virgin Galactic (NYSE: SPCE), Amazon, and Tesla (NASDAQ: TSLA) CEO Elon Musk's SpaceX in the new space race. Analysts agree that of the five CEOs, Apple's Tim Cook is the least likely to be a secret Bond villain. However, the contrarian argument of 'that's exactly what a bond villain would want you to believe' holds a lot of weight in certain circles.
Check out our article about SpaceX launching a missile to the ISS.
Quests for world domination aside, the move to space is an interesting one for Apple, who are notoriously fond of making money, not losing it. The race to become the first satellite internet provider is a costly trail and one which may not be fruitful for a long time. It is estimated that the current leader in the industry, SpaceX's Starlink, will cost close to $10 billion to complete. Whether Apple's secret satellite project will be the next big money-maker for the tech giant is yet to be seen. One thing is clear though, the potential profits at the finish line of the new space race are too big to miss.
MyWallSt operates a full disclosure policy. MyWallSt staff currently hold long positions in Virgin Galactic, Apple, Amazon, Facebook and Tesla. Read our full disclosure policy here.
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