Trump family in phone service licensing deal, touts a $499 device
The Trump family did not disclose which company would manufacture the phone in the United States and sell it for $499
Highlights:
- Trump Organization launches service, new phone
- Phones to be made in America, group announces
- Latest move by Trump Org into new business ventures
Donald Trump's family business licensed its name to launch a US mobile service and a $499 smartphone on Monday, calling it Trump Mobile, in the latest deal brokered by the president's children to capitalize on his last name while he is in office.
The new mobile venture, announced at Trump Tower in Manhattan, will operate using the networks of the three major US wireless carriers. Some key details about the venture, including those about the family's partner in the business and financial terms of their licensing deal, were not immediately disclosed.
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"We are going to be introducing an entire package of products where people can come and they can get telemedicine on their phones for one flat monthly fee, roadside assistance on their cars, unlimited texting to 100 countries around the world," said the president's eldest son, Donald Trump Jr.
The new network will be available for a subscription price of $47.45 per month, a reference to Trump, who was the 45th President in his previous term and is now serving as the 47th President.
The announcement also promoted the launch of a "sleek, gold smartphone" that will be "designed and built in the United States."
The Trump family did not disclose which company would manufacture the phone in the United States and sell it for $499. Despite the strength of US-based tech brands, there is no significant domestic smartphone production infrastructure, largely due to high labor costs, supply chain complexity, and reliance on overseas component sourcing.
Eric Trump on a podcast on Monday suggested that the first delivery of the phones by August might not be made in the United States.
"Eventually, all the phones can be built in the United States of America," Eric Trump said on "The Benny Show" podcast.
The president has said he put his business interests in a trust managed by his children to avoid conflicts of interest, but income from such business ventures will eventually enrich the president, who sits atop the series of Trump family firms.
In the president's financial disclosure released on Friday, he reported more than $600 million in income from licensing deals, crypto projects, golf clubs and other ventures. Those numbers appeared to be through the end of 2024, before he was inaugurated for his second term as president. Since then, the Trump family's crypto projects alone have brought in hundreds of millions of dollars, according to terms of sales listed by the Trump-related crypto entities.
"No one who has been paying attention could miss that President Trump considers the presidency a vehicle to grow his family's wealth. Maybe this example will help more come to see this undeniable truth," said Lawrence Lessig, a law professor at Harvard Law School.
The Trump Organization has had a string of business failures tied to licensing, including Trump Vodka, Trump Steaks, Trump Mattresses, Trump Ice and Trump University.
MVNO OPERATOR
The mobile service will include call centers based in the United States and phones made in America, according to the announcement by the Trump Organization, the term the family uses to describe the president's multiple business ventures. Wireless service provider AT&T currently operates call centers in the United States.
T1 Mobile uses the "Trump" name under a trademark license, similar to other Trump-branded ventures. According to the Trump Mobile website, the Trump Organization is not involved in designing the smartphone, manufacturing it, providing or selling the cellular service.
It was not immediately clear who is operating T1 Mobile LLC, which was registered in Florida in April under a Palm Beach Gardens address. The company's registered agent, attorney Stuart Kaplan, referred questions to the company's press handlers." Representatives of the Trump organization and T1's PR contact did not reply to requests for comment.
The US mobile network market is dominated by three national carriers: Verizon, AT&T, and T-Mobile, which together control over 95% of the wireless market. But mobile virtual network operators (MVNOs), which buy network capacity from the major US carriers, are becoming increasingly popular for targeting niche markets.
Actor Ryan Reynolds was both an investor and spokesperson for Mint Mobile, a low-cost MVNO aimed at light phone users, which was later acquired by T-Mobile for $1.35 billion.
It can be difficult for such ventures to make money, an analyst said.
"MVNOs account for barely 3-4% of US wireless subscriptions and customer churn tends to be high," said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors. "Unless Trump Mobile cracks the million-subscriber mark — well above most celebrity MVNOs — the financial impact is de minimis."
MADE IN USA
The smartphone industry in the United States is among the most saturated and competitive in the world, with leading global players Apple and Samsung dominating the market.
Nearly all of these smartphones bought in the US are manufactured abroad — primarily in China, South Korea, and increasingly in India and Vietnam.
Only one US company makes smartphones domestically, California-based Purism which makes Liberty phones that retail for $1,999. Aside from a chassis sourced from China, all components are made and assembled in the US—including the operating system software, which is developed in-house.
"If the Trump Phone is promising a $499 price tag with domestic manufacturing, this announcement looks to be classic vaporware," said Todd Weaver, CEO of Purism, referring to the unlikelihood of a US-manufactured phone being available at that price.
