According to Wall Street reports: The Trump Organization announced on Monday that it will launch a smartphone priced at $499 and a mobile service plan called "Trump Mobile" in September.
I suggested to Trump that he could learn from the successful model of SOL phones and add cryptocurrency airdrop features to the presidential phone, which would definitely sell like hotcakes!
The project was announced at Trump Tower in Manhattan, and the service will be provided through the networks of the three national wireless carriers. However, the identity of the family partner and the financial details of the authorization agreement have not been disclosed. According to information on the company's official website, "Trump Mobile" will offer a plan for $47.45 per month, including unlimited calls, texts, and data, as well as roadside assistance and "telehealth and pharmacy benefits." The company will also launch a smartphone called the "T1," featuring a gold metal casing engraved with the American flag, priced at $499.
Media reports indicate that this new business is another example of Trump’s commercial empire leveraging its association with the current presidential identity for brand monetization. The phone service named "The 47 Plan" and its monthly price of $47.45 both allude to Trump: he was the 45th president and is currently the 47th. Trump’s eldest son, Donald Trump Jr., stated:
"We will launch a complete suite of products, allowing users to access telehealth, roadside assistance, and unlimited texting to 100 countries worldwide for a unified monthly fee."
Claiming it will be made in America, experts say it can't possibly be sold for just $499.
According to pictures released by the company, the newly launched gold-cased smartphone has a sleek design and is said to be designed and manufactured in the U.S.
However, media reports indicate that despite the abundance of tech brands produced in the U.S., the country has almost no capacity for large-scale smartphone manufacturing due to high labor costs, complex supply chains, and reliance on imported components. Trump’s son, Eric Trump, hinted on a podcast Monday that the first batch of phones may not be produced in the U.S., but stated, "Eventually, all phones will be made in America."
The screenshots of the phone displayed on the website also feature Trump's campaign slogan "Make America Great Again." According to the official website, the T1 phone runs on the Android 15 system, equipped with a 6.8-inch AMOLED screen, a 16-megapixel selfie camera, a 50-megapixel main camera, 12GB of memory, and 256GB of storage.
Currently, the U.S. smartphone market is extremely saturated and competitive, with Apple and Samsung dominating. Almost all models on the market are manufactured overseas, primarily in China, South Korea, India, and Vietnam.
Only one U.S. company, Purism, manufactures phones domestically, with its Liberty phone priced at $1,999. Except for the shell, which is imported from China, all components and systems are developed and assembled in the U.S.
Purism CEO Todd Weaver pointed out that local manufacturing at this price point is nearly impossible to achieve.
"If the Trump phone claims to be made in America and priced at only $499, such a claim is likely just 'vaporware.'"
Since 2024, Trump’s circle has already profited over $600 million.
Like other products launched by Trump during his political career (such as watches, sneakers, and the Bible), this telecom business is also primarily conducted through brand licensing partnerships. The disclaimer at the bottom of the website states: "Trump Mobile and its products and services are not designed, developed, manufactured, distributed, or sold by Trump Organization or any of its affiliates or officers."
According to the media, despite ethical concerns raised about Trump’s brand licensing and merchandise transactions in recent years, he and his family continue to expand businesses that can generate substantial income. According to financial disclosures released last Friday, Trump made over $600 million in 2024 from brand licensing, cryptocurrency projects, golf courses, and other ventures, much of which were earnings from before his term began. Related cryptocurrency projects have since brought in hundreds of millions in revenue.
However, the fees for the "47 Plan" are slightly higher compared to other mainstream carriers. For example, Verizon's budget brand Visible offers an unlimited plan for only $25 per month, while Mint Mobile's annual unlimited plan costs $30 per month.
The Trump Mobile website claims that this plan "has the same coverage as the three major national phone service providers in the U.S.," and offers "customer service centers located in the U.S." However, when the media called their customer service, they refused to disclose the specific address of the service center citing "security reasons."
It is currently unclear who the operator of this plan is. The U.S. wireless market is dominated by three major carriers: Verizon, AT&T, and T-Mobile, which together hold over 95% market share. In recent years, the virtual network operator (MVNO) model has become increasingly popular, focusing on niche user markets. For example, actor Ryan Reynolds has invested in and endorsed the budget brand Mint Mobile, which was later acquired by T-Mobile for $1.35 billion.
However, analysts point out that such projects find it difficult to be profitable. Michael Ashley Schulman, Chief Investment Officer of Running Point Capital Advisors, said:
"MVNOs account for only 3-4% of wireless subscriptions in the U.S., with a high user churn rate. If Trump Mobile cannot break the one million user threshold, its financial impact will be negligible."
This article is from Wall Street reports.