It feels weird that I pay some small SaaS products more than this. You'd think slinging a few hundred satellites into space would be a more difficult / expensive endeavor.
So the current estimate published in business insider means you are about four times off based on the contract with ST, who we now know builds the chips inside of it. Please show your sources of a $500 phased array terminal.
To just take that number an convert it unit cost like that doesn't make sense. SpaceX will need many more then just 1M terminals, what matters is the marginal cost per terminal.
And if these numbers are accurate is also questionable.