The Trump family's next venture, a gold smartphone and mobile phone service

Australia Broadcast Center

5 hours ago

Donald Trump's family business is launching a new Trump-branded phone service in its latest plan to monetise the US president's name, though even his son admits manufacturing phones in America will be a challenge.
The Trump Organization, which is run by Mr Trump's sons Donald Jr and Eric Trump, said it planned to license a third party to sell a gold smartphone with Mr Trump's name that will be "proudly" built in the United States.
It joins Trump-branded watches, sneakers, fragrances and Bibles as products capitalising on his political brand, the licensing of which has made millions for his family.
But industry experts say the pitch to manufacture the phones in the US at a cheaper price point isn't possible, at least in the near future.
In announcing its plans, the executive vice-president of the Trump Organization, Eric Trump, said consumers deserve a phone that aligns with their values.
A website for the project advertises a $US47.45 monthly plan, an apparent nod to Mr Trump's two terms as the 47th and 45th president of the United States.
The mobile phone service also pitched a policy of "discounted" international calls for families with members serving in the military outside the US.
It's not the first time Mr Trump has ventured into the telecommunication industry. He once gave speeches and promoted a multi-level marketing company called ACN.
It was eventually sued for fraud and misleading customers.
The Trump Organization has also had a string of business failures tied to licensing, including Trump Vodka, Trump Steaks and Trump Mattresses.
According to the announcement, the $US499 ($765) T1 "sleek, gold smartphone" will be "proudly designed and built in the United States".
For comparison, Apple's iPhone 16 Pro Max — which is mainly made in China — costs $US1,199.
A mock-up of the planned phone on the company's website shows Mr Trump's slogan Make America Great Again on the front and an etched American flag on the back.
Tingling Dai, a Johns Hopkins University business professor, told the Wall Street Journal "there's absolutely no way you could make the screen, get the same memory, camera and battery" in the US.
He estimated it would take "at least five years" to build the infrastructure needed for domestic smartphone production.
High labour costs, supply chain complexity and reliance on overseas component sourcing are also key pain points.
In fact, the US only has one company that makes smartphones domestically, California-based Purism which makes Liberty phones that retail for $US1,999.
The Trump family hasn't disclosed which company would manufacture the phone, or which suppliers will provide the components.
Even the president's son, Eric Trump, suggested that the first delivery of phones in August might not be made in the US.
"Eventually, all the phones can be built in America," he claimed on the Benny Show podcast.
"If the Trump Phone is promising a $US499 price tag with domestic manufacturing, this announcement looks to be classic vapourware," said Todd Weaver, CEO of Purism, referring to the unlikelihood of a US-manufactured phone being available at that price.
Vapourware refers to software or hardware that has been advertised to the public but has not and may never become available.
Currently, only Chinese makers like Xiaomi and Oppo have hardware to match at the $US499 price point.
Speaking to Fox Business, Eric Trump said call centres supporting the phone service would also be based in the US.
"You're not calling up call centres in Bangladesh.
"You're doing it right out of St Louis, Missouri."
In April, Mr Trump told reporters on Air Force One he would be announcing tariff rates for imported semiconductors.
One of the main aims of these tariffs was to encourage firms to manufacture more products in the US.
"We want to make our chips and semiconductors and other things in our country," Mr Trump said.
According to the Semiconductor Industry Association (SIA), the US is projected to more than triple its semiconductor manufacturing capacity in the decade following the CHIPS and Science Act.
But a shortage of skilled workers may present a challenge to reinforcing chip supply chains on US shores.
The SIA says there would be a shortfall of 67,000 technicians, computer scientists, and engineers in the semiconductor industry by 2030, and a gap of 1.4 million such workers throughout the broader US economy.
When Mr Trump announced the tariffs, experts also investigated what it would take to make an iPhone in the US.
Dan Ives, an analyst at US financial firm Wedbush Securities, said the US would need years and $US30 billion to establish factories needed to match China's output.
At the time, Mr Ives said the concept of making iPhones in the US is a "non-starter" if Apple were to begin assembling iPhones in the US, a Chinese or Indian-made device that previously sold for $US1,000 would cost more than $US3,000.
Currently, the US, UK, Europe and China rely heavily on Taiwan for semiconductors.
The country's Taiwan Semiconductor Manufacturing Company provides over half the world's supply.
The Trump Organization's latest venture has raised ethical concerns and conflicts of interest for mobile carriers who would be contracted to the president.
The mobile service is partnering with existing cellular carriers with access to a 5G network, raising questions about how they will be treated by federal regulators now that they have partnered with his company.
The Trump Organization said those companies are America's three biggest mobile network providers, an apparent reference to Verizon, AT&T and T-Mobile, the latter with a trademarked name that is very similar to Trump's T1 Mobile.
The Federal Communications Commission, the primary regulatory body overseeing mobile phone companies, has already launched investigations of media outlets Mr Trump dislikes and, in some cases, is personally suing.
The phone deal comes as a mandatory financial disclosure report provided a glimpse into the vast business holdings of the billionaire president.
Mr Trump reported making more than $US600 million last year, including millions from items such as Trump-branded bibles, watches, sneakers and fragrances.
Forbes estimated in March that his net worth was $US5.1 billion, more than double that a year earlier.
It said the surge was due in part to the president's social media company, which runs the Truth Social platform.