Experts have cast doubt on the Trump Organisation’s claim that its proposed smartphone can be entirely manufactured in the US.
One industry analyst told the BBC it would be “virtually impossible” for the gold-coloured handset, which will retail at $499 (£367.50), to be built in the United States.
Questions have also been raised about the ethics of what is the latest in a series of attempts to cash in on President Donald Trump’s name.
“It’s unbelievable that the Trump family has created yet another way for President Trump to personally profit while in office,” said Meghan Faulkner, communications director for Citizens for Responsibility and Ethics in Washington.
The phone will also come alongside a mobile phone service with a monthly fee of $47.45.
The figure is a reference to Trump serving as the country’s 47th and 45th president.
Trump has said he has put his business interests in a trust, which is managed by his children. The White House has maintained that he acts in the interests of all Americans.
But Ms Faulkner said the latest venture raised familiar issues, including whether the new business will win customers from people hoping to influence Trump and how the president will craft policies and regulations for an industry in which his family now has a stake.
Made in America?
The Trump family has not said which company would manufacture its phone 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 on Monday, suggesting the phones released in August may not entirely be manufactured within the country.
Technology experts have questioned what the Trump Organisation’s “built in the United States” claim about its handsets means and argued it is probably not currently possible to manufacture smartphones from scratch in the US.
“They don’t even have a working prototype. It’s extremely unlikely,” said Prof Tinglong Dai, who teaches operations management at Johns Hopkins’ Carey Business School.
“You would have to have a miracle. You would need to have economies of scale. You would need to have a sustainable demand for this kind of product,” Prof Dai added.
The decision comes as Trump tries to pressure Apple chief executive Tim Cook to manufacture iPhones sold to American buyers in the US.
Last month, the president threatened to place a 25% import tax “at least” on iPhones not manufactured in America.
Analyst Leo Gebbie of CCS Insight noted that the US currently “simply does not have the high-tech supply chain” required for smartphone assembly, especially not in time to be released in August, as the Trump Organisation has said.
“However, it’s possible that the device could be assembled in the US with parts imported from abroad. This might be the most likely outcome that lets the T1 claim American sovereignty,” Mr Gebbie said.
The announcement was light on details, including the name of the business partner that will run the service and is licensing the name.
The Trump Organization did not immediately respond to questions from the BBC about its business partner, criticisms around potential ethics issues and a request for details of its “built in the United States” claim.
In announcing its plans, it said “hard-working Americans deserve a wireless service that’s affordable, reflects their values, and delivers reliable quality they can count on”.
It pitched a policy of “discounted” international calls to families with members serving outside the US in the military.
The announcement said the mobile service would have customer support staff based in the US to answer questions, as well as the gold-coloured phone, which is currently available for pre-order.
Trump’s net worth has more than doubled
The deal is an extension of a business strategy that Trump embraced long before his presidency, striking deals to sell his name to hoteliers and golf course operators in exchange for fees and royalties.
But the opportunities to profit from his brand have expanded since he entered politics a decade ago.
In his most recent financial disclosure, Trump reported making more than $600m last year, including millions from items such as Trump-branded bibles, watches, sneakers and fragrances.
Forbes in March estimated his net worth was $5.1bn, more than double what it was a year earlier.
It said the surge was due in part to the president’s “diehard following”, which is credited with helping to prop up the value of Trump’s social media company that runs the Truth Social platform, which accounted for roughly half his wealth last year.
The idea of a Trump-related smartphone has received mixed reactions online, with some people ready to buy it and others mocking the concept.
“Where do I have to wait in line to buy the new Trump phone?” one X user wrote.
Others have mocked the design, and poked fun at the phone habits of the man it’s named after, asking if texts on the new handset will all be in capital letters.
The mobile phone market in the US is currently dominated by three major players: AT&T, Verizon and T-Mobile, which all offer phone service starting at less than $40 a month.
There is also a growing number of smaller firms paying to use those networks to target niche groups of potential customers by offering lower prices or tailored plans.
The largest of those companies, which are known as mobile virtual network providers, have less than 10 million subscribers, according to a 2024 report by the Federal Communications Commission.
Mint Mobile, which was backed by Hollywood star Ryan Reynolds, was sold to T-Mobile for $1.35bn in 2023. At the time, one analyst estimated the service had roughly two to three million subscribers.
The actor had a 25% stake in the business, giving him a potential payout of about $300m.
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