NEW YORK – The Trump Organization’s venture into the smartphone market has hit an early snag, with the company quietly removing its claim that the new $499 T1 phone is “built in the United States” from its website.
Immediate Impact
The Trump Organization announced the gold-hued T1 smartphone on June 16, initially boasting on its Trump Mobile website that it was “designed and built in the United States.” However, just over a week later, the site has altered its language, now emphasizing “American hands” and “American values” instead.
Key Details Emerge
The original statement remains unchanged on Trump.com, but the shift in wording on the Trump Mobile site suggests a retreat from the bold claim of domestic manufacturing. The Trump administration has long advocated for increased U.S.-based manufacturing, yet supply chain realities make it clear that some components would likely originate from countries like China.
“Completely impossible” to fully make a phone in the US, says Francisco Jeronimo, VP at International Data Corp.
Industry Response
Industry experts have expressed skepticism about the feasibility of producing a smartphone entirely in the U.S. Francisco Jeronimo, vice president at International Data Corp., told CNBC that assembling or fully manufacturing the phone in the U.S. is “completely impossible.”
Eric Trump, one of the president’s sons, remarked that while the goal is to eventually build phones domestically, this will not be immediate. Trump Mobile will offer service through major carriers like AT&T, Verizon, and T-Mobile.
By the Numbers
Trump Mobile’s phone plan is priced at $47.45 monthly, reflecting Donald Trump’s tenure as both the 45th and 47th president.
Background Context
President Trump has indicated plans to impose a 25% tariff on smartphones not made in the U.S., a policy that could impact his own family’s phone venture. Meanwhile, the Trump Mobile launch has drawn comparisons to the Liberty Phone by Purism, which is marketed under the “Made in USA Electronics” label, a qualified claim under FTC rules.
Expert Analysis
CNET Senior Editor Mike Sorrentino noted several discrepancies on the Trump Mobile site, including errors in listing technical specifications and release dates. The site initially indicated a September release, later amended to “later this year.”
The Trump Mobile site launched with a map showing its coverage area, but it was pulled after it labeled the Gulf of Mexico as the Gulf of America.
What Comes Next
Despite the publicity surrounding the launch, US Mobile CEO Ahmed Khattak believes Trump Mobile is unlikely to disrupt major wireless carriers. “The U.S. wireless market is over $300 billion a year, and it is not a zero-sum game,” Khattak stated, emphasizing that new entrants like Trump Mobile often operate as mobile virtual network operators (MVNOs) using existing infrastructure.
Khattak also dismissed concerns about regulatory conflicts, noting that the FCC operates independently, despite commissioners being presidential appointees. He added that celebrity MVNOs often struggle due to the operational intensity and tight margins of the wireless industry.
Regional Implications
The Trump Organization’s diverse business interests, including the new smartphone venture, continue to draw attention. Reports suggest that other companies, such as Instant Pot and Lenox, are exploring Trump-related product lines, further entwining commercial ventures with the president’s brand.
The story of Trump Mobile’s T1 phone is ongoing, with industry watchers keenly observing how the company navigates the complexities of manufacturing claims, regulatory landscapes, and market competition.