Friday, June 20, 2025

Trump family enters mobile phone market with new $499 device and network deal

Date:

The Trump family has entered the US mobile services market with the launch of “Trump Mobile”, a new network and smartphone brand that bears the US president’s name. The venture includes a $499 handset and a subscription mobile service, and was announced at Trump Tower in Manhattan, New York.The mobile network will run on the infrastructure of the three major US telecom operators, but specific details — including the identity of the Trump family’s business partner and the financial terms — were not disclosed.
Donald Trump Jr, the former president’s eldest son, said the service would offer more than just mobile data. “We are going to be introducing an entire package of products,” he said, listing extras such as telemedicine access, roadside assistance, and global texting, all under one monthly fee.
That subscription will cost $47.45 — a nod to Donald Trump’s position as the 45th and 47th President of the United States.The service will also offer a gold-coloured smartphone, described as “sleek” and “designed and built in the United States”, although the family has not confirmed who will manufacture it. Eric Trump, speaking on a podcast, admitted the initial batch of phones may not be US-made, but said production could shift to America later.

Domestic smartphone manufacturing is rare in the US due to high labour costs, reliance on overseas suppliers, and complex supply chains. Most smartphones sold in the U.S. are produced in China, South Korea, India, or Vietnam. Only one company, California-based Purism, currently makes phones entirely in the US, and they sell for nearly $2,000.

Todd Weaver, CEO of Purism, questioned the Trump venture’s claims: “If the Trump Phone is promising a $499 price tag with domestic manufacturing, this announcement looks to be classic vaporware,” he said, using the term often applied to tech products that are announced but never delivered.

The Trump family’s venture will operate as a mobile virtual network operator (MVNO), meaning it will lease network capacity from larger telecom providers instead of running its own infrastructure. MVNOs account for a small share of the U.S. wireless market and often focus on niche audiences. Actor Ryan Reynolds was part of a similar venture with Mint Mobile, which was later bought by T-Mobile for $1.35 billion.

Analysts remain sceptical about the Trump venture’s financial viability. Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors, said: “MVNOs account for barely 3–4% of U.S. wireless subscriptions and customer churn tends to be high. Unless Trump Mobile cracks the million-subscriber mark — well above most celebrity MVNOs — the financial impact is de minimis.”

T1 Mobile, the company behind the service, was quietly registered in Florida in April under a Palm Beach Gardens address. It uses the Trump name under licence. According to the Trump Mobile website, the Trump Organization is not involved in designing the phone, manufacturing it, or providing the mobile service directly.

The family has a mixed history with product licensing. Previous Trump-branded ventures — including Trump Vodka, Trump Steaks, Trump University, and others — have met with limited success or legal trouble.

Despite Donald Trump saying he has handed control of his business interests to his children to avoid conflicts of interest, he still benefits financially from licensing deals and investments. His latest financial disclosure, released last Friday, reported more than $600 million in income from golf resorts, crypto projects, and other business ventures through the end of 2024. Crypto-related ventures alone have generated hundreds of millions since then.

Harvard law professor Lawrence Lessig said: “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.”

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