SpaceX's Swarm stopped selling its IoT devices as Direct to Cell loomed

Swarm built the small-satellite SwarmBEEs constellation selling low-power modems and low-bandwidth IoT connectivity from as little as $5 a month.

Founded in 2016 by Sara Spangelo and Ben Longmier, Swarm emerged in 2018 with an ambitious plan to launch its own satellite network and sell hardware that could turn almost anything into a connected device — the M138 modem plus an IoT development kit.

In early July 2023 Swarm told customers it would stop selling new devices. It said it will keep supporting ongoing VHF communications between Earth and space using the SwarmBEEs constellation, and plans a version of its low-power M138 modem compatible with SpaceX's Direct to Cell network. Both founders are now senior SpaceX satellite-engineering directors; Spangelo is co-lead of Direct to Cell.

New device sales are halted while existing VHF connectivity continues. TechCrunch's read: Swarm will ultimately yield to its parent's ambition to connect mobile phones and IoT devices on its own network, in partnership with T-Mobile.

The halt is strategy, not failure: Swarm's modem line yields to Direct to Cell, which the co-founder gained in the acquisition now co-leads.

Existing VHF service continues, giving IoT customers continuity while the replacement path is prepared.

It shows what acquisition-by-platform means: the subsidiary's roadmap bends to the parent's much larger market.

When a giant acquires a niche hardware maker, the endgame is written early: the product lingers until the parent's platform absorbs it, and customers get a migration path instead of a sunset date.

As of July 2023 Swarm was no longer selling new devices, kept supporting SwarmBEEs VHF communications, and promised an M138 modem variant compatible with Direct to Cell.