Trump Group to Launch Smartphone, Market Prospects Worrying

Author: Jin Yan, special contributor of Caijing

The Trump Organization announced on Monday, June 16, that it will launch a smartphone priced at $499 and a mobile service plan called "Trump Mobile" in September. The day also marks the tenth anniversary of U.S. President Trump's announcement of his candidacy for the 2016 presidential election. The project was unveiled at Trump Tower in Manhattan, and the service will be provided through the networks of three major national wireless carriers. However, the identities of the family partners and the financial details of the authorization agreement have not yet been disclosed.

According to the company's official website, "Trump Mobile" will offer a monthly plan for $47.45, which includes unlimited calls, text messages, and data, as well as roadside assistance and "telemedicine and pharmacy benefits." The company will also launch a smartphone named "T1," featuring a gold metal casing with a luxury gold color scheme and engraved with the American flag pattern, priced at $499.

Previously, Trump threatened to impose a 25% tariff on all imported iPhones, demanding that tech giant Apple produce more devices domestically. Apple attempted to appease Trump by shifting iPhone production destined for the U.S. from China to India. However, Trump had earlier rejected this move as well. He also threatened to impose tariffs on all imported smartphones.

According to media reports, this new business is another example of the Trump business empire monetizing its association with the current presidential identity. The mobile service named "The 47 Plan" and the monthly price of $47.45 both allude to Trump: he was the 45th president and is now the 47th. Trump's eldest son, Donald Trump Jr., stated, "We will launch a whole suite of products that allow users to access telemedicine, roadside assistance, unlimited text messaging to 100 countries worldwide, and more for a single monthly fee on their phones."

Multiple analysts pointed out that for the Trump Group, their potential consumers would be concentrated among American conservatives. Although they claim to create an alternative telecom brand "Made in America," the prospects are not promising considering that the U.S. smartphone market is already highly saturated.

The U.S. wireless market is dominated by three major carriers: Verizon, AT&T, and T-Mobile, which account for over 95% of the market share nationwide. In recent years, the virtual operator (MVNO) model has become increasingly popular, focusing on niche user markets. However, MVNOs only account for 3%-4% of wireless subscriptions in the U.S., with a high churn rate. If Trump Mobile cannot break the million-user threshold, market analysts say its financial impact can be considered negligible.

Paul Pescatore, a telecom media technology analyst at the research firm PP Foresight, stated: "There are still many questions regarding the business model behind Trump's move, and the key lies in the lack of clarity regarding the specific collaboration with telecom operators."

Traditionally, the Trump Organization has focused on real estate and hospitality, but in recent years it has gradually expanded into the technology sector, including Truth Social, a social networking platform founded in 2022, cryptocurrency-related investments, and Trump's mobile messaging service as its latest business expansion. DTTM Operations, which represents Trump's trademark business, has also filed an application with the U.S. Patent and Trademark Office covering the rights of "T1" and "Trump" to use telecommunications-related products and services, including cell phones, accessories, wireless services, and even retail stores.

Currently, there is only one American company, Purism, producing smartphones domestically in the United States. Its Liberty phone is priced at a staggering $1999, and aside from the casing which is imported from China, all components and systems are developed and assembled in the U.S. Purism CEO Todd Weaver pointed out that the Trump phone claims to be manufactured in the U.S. and is priced at only $499, which makes domestic manufacturing at that price almost impossible.

Currently, the U.S. smartphone market is extremely saturated and competitive, with Apple and Samsung dominating. Almost all commercially available models are manufactured overseas, with major production locations including China, South Korea, India, and Vietnam. Despite the large number of U.S.-made technology brands, the U.S. has little or no large-scale smartphone manufacturing capacity due to high labor costs, complex supply chains, and reliance on imports for components. Trump's son, Eric Trump, hinted in a podcast on Monday that the first phones may not be made in the United States, but said that "eventually all phones will be made in the United States." Screenshots of mobile phones displayed on the website also featured Mr. Trump's campaign slogan, "Make America Great Again." According to the information on the official website, the T1 mobile phone runs Android 15 system, the machine supports under-screen fingerprint and AI face recognition unlocking, equipped with a 6.8-inch AMOLED screen, a 16-million-pixel selfie lens, a 50-million-pixel main camera, 12GB of memory, and a storage space of 256GB.

Before Trump's inauguration, the Trump Organization stated that control of the company would be transferred to his children, continuing the arrangements made during his first term. There is growing ethical concern from the outside world regarding Trump's brand licensing and merchandise transactions in recent years, and worries about potential conflicts of interest are also increasing. This telecommunications business, like other products launched by Trump during his political career (such as watches, sneakers, and the Bible), is mainly conducted through brand licensing partnerships. The disclaimer at the bottom of the website states: "Trump Mobile and its products and services are not designed, developed, manufactured, distributed, or sold by the Trump Organization or any of its affiliates or officers."

Since the beginning of 2024, Trump and his associates have made over $600 million in profits.