Unless the Trump family secretly built a U.S. factory, industry experts say the $500 made-in-America smartphone is a fantasy
Donald Trump's family business is putting the president's name behind something that few have dared to produce in years: a made-in-America smartphone.
The Trump Organization, led by the president's eldest sons, said on Monday that it has licensed Donald Trump's name to a new wireless service and a gold-colored phone. The T1, as the device is called, is supposed to be available in August for $499, and is 'proudly designed and built in the United States,' the company said in a statement.
But the patriotic pitch drew immediate skepticism, and not just over President Trump trying to cash in again while in office. Several tech industry insiders questioned whether selling a made-in-America phone is even possible within just a few months, considering most electronics manufacturing is done overseas because of expensive domestic labor, a shortage of skilled workers, and a lack of suppliers.
'As someone who's spent over a decade building a secure, privacy-first smartphone, focusing on manufacturing in the U.S., and I can say this with confidence: Producing a fully U.S.-made phone isn't something you spin up overnight,' said Todd Weaver, CEO of Purism, the only company currently producing a U.S.-made smartphone. 'If the Trump phone is promising a $499 price tag with domestic manufacturing, this announcement looks to be classic vaporware.'
Purism's U.S.-made phone, the Liberty Phone, costs $650 to produce, according to Weaver, and retails for $2,000. The markup covers some of the additional administrative costs for security-conscious customers who want to verify the phone's supply chain, along with Purism's profit.
The T1, in contrast, would retail for just a fraction of that price, raising questions about how such a U.S.-made device would be profitable.
The Trump Organization didn't disclose which company will make the T1, or where it will be produced. It only gave some technical specifications, including that it will run on Google's Android operating system, come with a fingerprint sensor and facial recognition for unlocking, and have a 6.8-inch screen.
The product page for the phone is also riddled with errors and omissions. It described the device as having a '5000mAh long life camera' (it should say 'battery,' an error that was subsequently fixed) and '12GB Ram storage' (RAM is generally referred to as memory, since any data stored in RAM is erased when the device is switched off), while neglecting to disclose an all-important piece of information: the kind of chips that will go into it.
Wayne Lam, an analyst with TechInsights, said available information about the phone 'doesn't suggest it is a competitive phone design' compared with higher-end devices like Apple's iPhone. He called the specs for the T1 'underwhelming.'
Manufacturing phones in the U.S., at least by major companies, is widely considered to be a lost cause. These days, their devices and components are almost entirely produced in Asia. Executives say U.S. manufacturing is too expensive in comparison, and that there aren't enough suppliers and skilled workers to get the job done.
Even if a company wanted to try its luck, setting up manufacturing of a U.S.-made phone could take years—not just a few months. A business would need time to line up suppliers, recruit workers, and set up a production facility.
Donald Trump's son Eric may have hinted at how the T1 will get around the problem. In an interview with podcaster Benny Johnson, on The Benny Show, he indicated that, initially, the phone may be made overseas. 'Eventually all the phones will be built in the United States of America,' Eric said. 'We need to bring manufacturing back.'
Of course, President Trump has made reshoring U.S. manufacturing a priority with his 'Liberation Day' tariffs in April and attacks on Apple for manufacturing its iPhones in Asia. Any imported T1 phones, or components, would, theoretically, be subject to his import levies.
In addition to the phone, Trump will also give his name to a wireless service, called Trump Mobile, that will cost $47.45 monthly and come with up to 20 GB of data. The price is a not-so-subtle reference to his two terms as president.
The Trump Organization did not say who it's partnering with on the wireless service or device, but tucked away in the website's terms of use is a reference to the service being powered by Liberty Mobile Wireless, itself a 'virtual' carrier that uses other companies' networks. Wireless coverage will come from the nation's three biggest wireless providers, the Trump Organization said.
Ross Rubin, an analyst with Reticle Research, said Trump Mobile's wireless service is more expensive than comparable carrier plans, like T-Mobile's Metro and Verizon's Total, along with discount provider Boost Mobile. Plus, he said, some of those carriers will give new customers a free phone when they sign up.
Weaver, of Purism, brought up one complication when it comes to the Trump Organization claiming a product is made in the USA. The Federal Trade Commission has strict rules that spell out when companies can and can't market a product as being homegrown. 'Unless the Trump family secretly built out a secure, onshore or nearshore fab operation over years of work without anyone noticing, it's simply not possible to deliver what they're promising,' Weaver said.
This story was originally featured on Fortune.com
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