Trump Organization announces smartphone targeting conservative consumers
A $499 gold phone built entirely in the United States and a mobile plan boasting telehealth services have been announced by the Trump Organization as part of an effort to entice the US president's supporters away from major telecom providers and wireless services.
The mobile service is the latest example of the president's family striking business deals off of the Trump name.
The eponymous Trump Mobile was announced in a Monday statement issued by the Trump Organization, which is led by President Donald Trump's son Eric.
Dubbed the 47 Plan, the service will cost consumers $47.45 a month and will offer '5G service through all three major cellular carriers' – T-Mobile, Verizon and AT&T. According to the statement, it will offer telemedicine, unlimited texting plans with 100 counties, and roadside assistance.
Some key details about the venture, including those about the family's partner in the business and the financial terms of their licensing deal, were not immediately disclosed.
The 'T1 Phone' is advertised as 'proudly designed and built in the United States' and listed with a release date in August, although a tech writer from The Verge questioned the viability of building a phone in the US so quickly.
Speaking on Fox Business, Eric Trump said Trump Mobile would have call centres in St Louis, Missouri.
The Trump family, long known for its real estate empire, luxury hotels, and golf resorts, has in recent years ventured into newer arenas including digital media and cryptocurrency.
President Trump 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 Trump, who sits atop the series of Trump family firms. In the president's financial disclosure released on Friday, he reported more than $600m in income from licensing deals, crypto projects, golf clubs and other ventures – though that figure appeared to be only through the end of 2024, before his inauguration.
The Trump Mobile announcement coincides with increased tension between the Trump administration and Apple in particular. The White House explicitly called for 25 percent tariffs on Apple products unless they are made in the US.
'It's pointed at Apple, that's a really big downward price pressure on what Apple's trying to do,' Brian Mulberry, client portfolio manager at Zacks Investment Management, told the Reuters news agency.
Despite a recent pledge to spend $500bn in the US on manufacturing, research and development – comparable to pledges the Cupertino, California-based tech giant made in the past – the company recently doubled down on moving key parts of its production from China to India.
'There's been kind of an opening for this type of device, if you will, simply because not just Apple, but Samsung devices to a certain extent as well, have really gotten so expensive in the moment in time and we haven't really seen that big of a measurable increase in utility,' Mulberry said.
The Trump Organization, which is the main holding entity for most of the US president's business ventures, said ahead of Trump's inauguration that control of the company would be handed to his children, replicating the arrangement from his first term, though concerns about potential conflicts of interest remain.
'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,' Lawrence Lessig, a professor at Harvard Law School, told Reuters.
While the Trump Organization is privately held, Trump-related stocks have not performed well on the news of the new smartphone and service plan. Trump Media & Technology Group Corp, which is traded under the ticker DJT, is down 1.59 percent for the day as of 11am ET (15:00 GMT). The stock has already been on the downturn. It has tumbled more than 10 percent in the last five trading days.
'I don't see much impact from Trump Mobile across the industry, as half of its addressable market is negated by political parties, and then from there, this industry already has a lot of stickiness to current providers,' David Wagner, head of equities at Aptus Capital Advisors, told Reuters.
Major wireless carriers have been having a mixed day on Wall Street. Verizon is down by about 0.1 percent from yesterday's close. AT&T is up 0.2 percent from the market close yesterday. T-Mobile is up 0.5 percent. The new phone announcement has not underpinned Apple in the markets. Apple's stock is up 0.7 percent from the market close yesterday.
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