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Yahoo
a day ago
- Business
- Yahoo
The Trump Family Is Betting Big on Mobile Phones. Should Apple Stock Investors Be Worried?
President Donald Trump's family business is entering a new market: mobile phones. This initiative, led by the president's sons Eric Trump and Donald Trump Jr., will feature a made-in-the-USA phone retailing for $499 and a mobile phone service priced at $47.45 a month, a reference to Trump's terms as the 45th and 47th president. Trump Mobile, which will be operated by T1 Mobile LLC, also promises to run U.S.-based call centers for customer support. Dear Tesla Stock Fans, Mark Your Calendars for June 22 Trump Is Giving Tesla's Robotaxis a Leg Up Ahead of June 22. Should You Buy TSLA Stock Now? Nvidia Says Quantum Computing Is Nearing an 'Inflection Point.' Here Are the 3 Best Stocks to Buy Now to Profit. Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. 'Hard-working Americans deserve a wireless service that's affordable, reflects their values, and delivers reliable quality they can count on,' Eric Trump said in a statement. So, where does this leave Apple (AAPL)? Is the Trump family's entrance into the mobile phone market a cause for concern for AAPL investors? Make no mistake, Apple has problems, and some of them are Trump-centric. The president made his displeasure particularly clear with Apple's plans to move production of most of the iPhones used in the United States to India, remarking about CEO Tim Cook, 'I said to him, 'my friend, I treated you very good. You're coming here with $500 billion, but now I hear you're building all over India.' I don't want you building in India.' Apple has pledged to invest $500 billion across the United States over the coming four years, including through building an advanced server manufacturing hub in Texas. These initiatives are expected to help mitigate Apple's exposure to tariffs while simultaneously generating political goodwill through localized production. At the same time, Apple has stepped up its efforts to diversify its manufacturing footprint. As of the second quarter of its fiscal 2025, around half of the iPhones intended for U.S. consumers are now assembled in India, which is an outcome of a notable strategic shift. In addition, a substantial share of iPads, Macs, Apple Watches, and AirPods for the American market are now manufactured in Vietnam. As for the potential challenge posed by Trump Mobile, Apple appears well-insulated. With a global installed base of more than 2 billion active devices, a brand identity that is unrivaled in the tech world, and a deeply integrated ecosystem that creates substantial user lock-in, it is hard to envision a scenario where a nascent competitor like T1 Mobile poses any meaningful disruption. Apple's Services division, in particular, has served as a bright spot in an otherwise uncertain environment, helping buffer the company from headwinds such as geopolitical tensions and a maturing hardware market. With 1 billion active paid subscriptions, this segment continues to deliver dependable revenue streams. It includes high-margin components like the App Store, Apple Music, Apple TV+, iCloud services, Apple Pay, and lucrative licensing deals, notably its multibillion-dollar agreement with Google (GOOGL) for default search placement on Safari. What makes the Services business especially compelling is its profitability. In Q2, it posted a gross margin of 75.7%, well ahead of the 35.9% gross margin seen in the Products division. This margin advantage underscores the scalable nature of digital services, where additional user acquisition adds minimal incremental costs once the infrastructure is established. Moreover, as discussed in my prior analysis, Apple is making deliberate moves to broaden accessibility to its devices by appealing to more cost-conscious consumers while also exploring radical design changes for the iPhone's next iteration. In light of these factors, even with ongoing debates around Apple's pace of innovation and exposure to tariffs, it is difficult to see how the unreleased Trump T1 Mobile would pose any credible threat to the iPhone's dominance. Apple's fundamentals should also give investors confidence here. Apple has a market cap of $2.96 trillion and 10-year revenue and earnings compound annual growth rates of 6.56% and 7.36%, respectively. Although the stock is down 21.9% on a YTD basis, its shares are up more than 500% over the past decade and nearly 125% over the past five years. In line with its well-established pattern, Apple once again delivered quarterly results that outperformed Wall Street projections. The tech giant reported total revenue of $95.4 billion for Q2 2025, reflecting a 5.1% increase from the same period last year. Gross margin also improved, rising to 47.1% compared to 46.6% a year earlier. Revenue from the Products division saw a slight year-over-year uptick of 2.7%, totaling $68.7 billion, whereas the company's Services arm continued its strong growth trajectory with an 11.6% increase, bringing in $26.6 billion. Earnings per share reached $1.65, representing a 7.8% rise from the previous year and surpassing analysts' average forecast of $1.62. Apple ended the quarter in a strong financial position, holding $28.2 billion in cash, a figure comfortably above its short-term liabilities of approximately $6 billion. Further reinforcing its commitment to shareholder returns, the company also revealed a new $100 billion stock repurchase authorization alongside a 4% boost in its quarterly dividend, now set at $0.26 per share. However, beyond the earlier-mentioned tariff-related issues, another pressing concern weighing on Apple's stock trajectory has been its comparatively subdued performance in artificial intelligence. Despite the company's progress in mitigating supply chain vulnerabilities, its approach to AI has not resonated as strongly with investors as some had hoped. Apple's unveiling of its AI suite, branded as 'Apple Intelligence' during WWDC 2024, arrived with much anticipation but failed to sustain interest. The buzz surrounding the announcement quickly dissipated, largely due to its limited compatibility (available only on newer models starting with the iPhone 15 Pro) thereby leaving a sizable segment of its user base excluded. The delay of the enhanced Siri, now postponed until spring 2026, only adds to growing frustrations. Legal hurdles have also emerged, with lawsuits now pending that accuse the company of misleading advertising practices and anti-competitive behavior. Further, expectations were also dampened following WWDC 2025, where the keynote failed to inject fresh energy into Apple's AI narrative. While the introduction of a redesigned interface dubbed 'Liquid Glass' drew attention, many critics saw it as more of a visual upgrade than a meaningful leap in functionality. Moreover, the broader presentation lacked the kind of bold AI vision that competitors have recently demonstrated. Google, for example, showcased its advanced Veo 3 model during I/O just weeks earlier, reinforcing the perception that Apple is trailing in this space. That said, one potentially transformative step was the company's move to open its proprietary Apple Intelligence model to third-party developers. This could, in time, promote broader AI integration across its product suite, spanning hardware and services alike. Still, the payoff from this strategy is unlikely to be immediate. And with competitors rapidly accelerating AI deployment, Apple may be running short on time to reassert leadership in the next wave of consumer tech innovation. Considering all this, analysts have earmarked a rating of 'Moderate Buy' for Apple stock with a mean target price of $230.75. This indicates upside potential of about 18% from current levels. Out of 37 analysts covering the stock, 18 have a 'Strong Buy' rating, three have a 'Moderate Buy' rating, 13 have a 'Hold' rating, one has a 'Moderate Sell' rating, and two have a 'Strong Sell' rating. On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Independent
2 days ago
- Business
- The Independent
Just-launched Trump Mobile mocked over ‘Gulf of Mexico' coverage map gaffe: ‘Priceless'
Trump Mobile, the newly launched line of smartphones produced by the Trump Organization for 'real Americans,' has become a target for Internet mockery yet again after social media users realized its coverage map featured the Gulf of Mexico - not the Trump-preferred 'Gulf of America' Eagle-eyed users were quick to point out that a coverage map for the American-made smartphones labeled the body of water off the coast of Louisiana as the Gulf of Mexico. 'The new Trump Mobile coverage map was released today. It features the Gulf of Mexico!' one person wrote on X, sharing both screen grabs and video evidence of the gaffe. 'Trump family literally deleted an entire page off their grifting website because it showed Gulf of Mexico instead of Gulf of America,' one person wrote along with a laughing crying emoji. Another chimed in to mock the situation, writing, 'Trump probably does not remember by now that he renamed it.' 'They keep forgetting their own b*******.' another added. Another social media user jibed: 'It will always be the Gulf of Mexico. This is culture war BS.' The business, run by President Donald Trump's eldest sons, Donald Trump Jr. and Eric Trump, promptly pulled its coverage map after social media users started to point out the discrepancy in names for the body of water. In a January 2025 executive order, Trump made the controversial decision to rename the body of water the 'Gulf of America,' which was adhered to by Google and Apple Maps, despite backlash. According to Wired, the coverage map initially shared by Trump Mobile resembled that used by Ultra Mobile, a mobile virtual network operator owned by T-Mobile. The map was taken down hours after the official launch of Trump Mobile, with the website taking users to a '404 not found' message. The Trump Mobile phones are set to be available in August for $499, though experts have warned they may end up costing much more if they do end up being manufactured in America, as promised. Phone plans for the T1 Phone will cost $47.45 a month and will include call centers based in the U.S. and phones made in America, according to the Trump Organization. The company's launch comes after Trump has piled pressure on tech giant Apple to move its manufacturing base to the U.S. at the risk of feeling the wrath of his sweeping tariffs, introduced on so-called Liberation Day.
Associated Press
2 days ago
- Business
- Associated Press
Yes, more and more celebrities are entering the phone business. Here's why
NEW YORK (AP) — More and more celebrities are looking to attach their names to your phone. Or rather, wireless services that could power it. From cosmetics to snacks and signature spirits, brands launched or co-owned by high-profile figures are just about everywhere you look today. But several big names are also venturing into the market for mobile virtual network operators — or MVNOs, an industry term for businesses that provide cell coverage by leasing infrastructure from bigger, more established carriers. U.S. President Donald Trump's family was the most recent to join the list with the launch of Trump Mobile this week. Here's what to know. Which big names have entered the phone business? On Monday, The Trump Organization (currently run by the president's sons Eric and Donald Jr.) unveiled Trump Mobile. The company says this new business will offer cell service, through an apparent licensing deal with 'all three major cellular carriers' in the U.S., and sell gold phones by August. Trump Mobile marks the latest in a string of new Trump-branded offerings — which already span from golden sneakers to 'God Bless the USA' bibles — despite mounting ethical concerns that the president is profiting off his position and could distort public policy for personal gain. 'This raises a real question about a conflict of interest,' said Ben Bentzin, an associate professor of instruction at The University of Texas at Austin's McCombs School of Business. As the sitting president, Trump appoints leadership for the Federal Communications Commission — and the family's new phone venture exists under this regulatory authority. All of this sets Trump Mobile apart from other big names that have recently ventured into the wireless business. Still, its launch arrives as a growing number of celebrities tap into this space. Just last week, actors Jason Bateman, Sean Hayes and Will Arnett launched SmartLess Mobile, a name that mirrors the trio's 'SmartLess' podcast. Now live across the contiguous U.S. and Puerto Rico, SmartLess Mobile runs on T-Mobile's 5G Network. Another wireless provider with ties to fame is Mint Mobile. While not launched by celebrities, Ryan Reynolds purchased an ownership stake in Mint in 2019. Mint's parent, the Ka'ena Corporation, was later acquired by T-Mobile in a deal worth up to $1.35 billion. Beyond names of famous people, well-known brands that weren't traditionally in the phone business have also got in on the action over the years — particuarly outside of the U.S., Forrester Research senior analyst Octavio Garcia Granados notes. He points to Walmart's 'Bait' mobile plan in Mexico, for example, as well as Italian soccer club AC Milan launching its own mobile SIM cards for fans. 'The MVNO market is not new,' said Garcia Granados. 'What's new is the development on how it's consumed and the (ease) for brands to launch such plans.' MVNOs have also emerged outside of high-profile brands or launch teams. Bentzin points to Straight Talk and Cricket — which are now owned by Verizon and AT&T, respectively. Still, traditional celebrity endorsements are common across the board. And in recent years, 'influencer marketing' has been 'the fastest growing area of advertising and promotion,' he notes. What are these cell services offering? Why were they launched? For Trump Mobile, the pitch seems to be all about having an 'all-American service' while also tapping into the fan base of the president. The company noted Monday that it chose to unveil Trump Mobile on the 10th anniversary of Trump launching 'his historic presidential campaign.' The name given to its flagship offer, The 47 Plan, and the $47.45 monthly fee make reference to the president's two terms. And a mock-up of the planned gold phone on the company's website shows Trump's 'Make America Great' slogan on the front screen. According to the company, Trump Mobile's 47 Plan will include unlimited calls, texts and data through partner carriers, as well as free roadside assistance and telehealth services. It also says the new phone, called the 'T1 Phone,' will be available for $499 in August — but notes that this device won't be designed or made by Trump Mobile. Still, the company emphasized that these phones will be built in the U.S. Experts have since shared skepticism about that being possible in two months. And beyond the future T1 Phone, others stress that a monthly cell service fee of just under $50 is pricey compared to other MVNO options today. 'It's not actual lower pricing. It's really trading on the fan base, if you will, of Trump,' said Bentzin. SmartLess Mobile and Mint Mobile, of course, don't carry these same political ties. And the wireless plans offered by both boast less expensive offerings. T-Mobile-owned Mint advertises 'flexible, buy-in-bulk' plans that range from $15 to $30 a month. Each option includes unlimited talk and text nationwide, but vary depending on plan length and data amount. Mint, founded in 2016, says it started 'because we'd had enough of the wireless industry's games' — and promises to help consumers avoid hidden fees. SmartLess Mobile's plans also start at $15 a month. Depending on the data amount purchased, that base fee can rise to $30 — but all of its plans similarly offer unlimited talk and text using T-Mobile's network. When launching last week, SmartLess underlined that its goal is to help people stop paying for the data they don't use, noting that the majority of data used by consumers today happens over Wi-Fi. 'Seriously, if your phone bill knew how often you're on Wi-Fi, it would be embarrassed,' Hayes said in a statement for SmartLess Mobile's June 10 launch. What's the demand? MVNOs have proven to be attractive acquisitions to big wireless carriers over the years. But whether or not the star factor promises significant demand has yet to be seen for the market's most recent entrants. For the more established Mint Mobile, Reynolds' investment is a success story. The 25% stake that the actor reportedly owned in 2023, when the company announced that it would be acquired by T-Mobile, was estimated to give him a personal windfall of over $300 million in cash and stock. And since that deal closed, Reynolds has remained in his creative role for Mint and as the face of many campaigns — helping the brand continue to attract new customers. It's no surprise that the potential of such business returns might attract other celebrities to make similar investments, Bentzin notes. Still, newer ventures are untested. And 'as the market becomes more crowded, it could be harder and harder to pick off individual consumers,' he added. Beyond a high-profile name, quality of service and what consumers can afford is also critical. 'The competition battleground here is brand and price,' Bentzin said. Still, if the marketing is right and product meets consumer needs, experts like Garcia Granados note that MVNOs can be a profitable business, for both the brands that start them and the telecommunications giants — like T-Mobile, Verizon and AT&T — offering this 'wholesale' access to their infrastructure. As a result, he said, such high-profile ventures become 'a catalyst for others to follow.' ______ AP Business Writer Bernard Condon contributed to this report from New York.
Gizmodo
2 days ago
- Sport
- Gizmodo
Peter Thiel-Backed ‘Enhanced Olympics' Is Elaborate Supplement-Selling Scheme: Report
Tech billionaires like to paint themselves as contrarian geniuses—guys (pretty much always guys) who see institutions insist that things should be done one way because of silly things like evidence and experience and respond, 'I, a person who has zero knowledge or exposure to this thing, know better.' There is perhaps no starker illustration of this mindset than the 'Enhanced Games,' an Olympics-like competition with Peter Thiel's backing that sets aside bans on performance-enhancing drugs and encourages competitors to inject themselves in whatever will make them the best version of themselves. According to a new report from Wired, things are not going quite as planned. To be clear, the Enhanced Games do appear to be happening. They're scheduled for May 2026 in Las Vegas, a handful of athletes are on board, and there is funding from the likes of Thiel and Donald Trump Jr.'s 1789 Capital. But behind the scenes, it seems like things have been a bit of a mess. For example, to promote the games, founder Aron D'Souza put up $1 million for any 'enhanced' athlete (read: taking drugs that are banned from other official competitions) to beat the swimming world records for the 100-meter sprint or the 50-meter freestyle. Kristian Gkolomeev, a 31-year-old Olympian from Bulgaria, achieved that goal…but he wasn't the horse that the Enhanced movement initially backed. Australian swimmer James Magnussen was supposed to be the poster boy for the games, moving to California to undergo a doping regimen that had him hopped up on testosterone and growth hormones to train his way to a world record. According to Wired, Magnussen actually ended up getting too buff, his muscle mass weighing him down and bulking him up so much that when they gave him his swimsuit—a full-body polyurethane 'supersuit' that has been banned from Olympic competition—he ripped it. When he finally got in the water to put the enhanced approach to the test, he posted a time that was 1.2 seconds slower than his own personal best from when he was swimming clean. Gkolomeev joined the 'Enhanced' challenge late, but benefited from a toned-down regimen that made Magnussen too big. He ultimately did set a new world record, though when he tried to replicate it weeks later, after more time on the doping program and his body undergoing more changes, he finished with a slower time. Wired asked both the swimmer and his trainer if he could have beaten the world record without drugs, and both concluded he probably could have. Ah well! D'Souza—perhaps best known as the guy who led Thiel's litigation against Gawker—seems to be a true believer in the whole 'Enhanced' (read: drugged-up) human movement, and he seems confused as to why no one else gets it. Per Wired, part of the reason he launched his competition was because he had dinner with members of the International Olympic Committee and found them to display 'unimpressive' intellect. But it seems the further the project goes, the more D'Souza and company realize there might be standards in place for a reason. He's already backed down from a drug-fueled free-for-all to restricting participating athletes to using drugs that are legal in their home country and prescribed to them by a doctor, and they have to undergo strict monitoring to make sure their bodies are responding well to doping. Meanwhile, the real motive behind the 'Enhanced' movement appears to be simple: it's a scheme to sell supplements and sports drinks, a giant market with extremely high margins. Wired reported that D'Souza announced Enhanced Performance Products alongside the upcoming Enhanced Games. Someone should tell him it'd be cheaper to just start a podcast.
Time of India
2 days ago
- Business
- Time of India
Is the Trump Mobile really worth the hype? Here's a breakdown
Is the Trump Mobile really worth the hype? Here's a breakdown Team TOI Plus Updated: Jun 18, 2025, 22:01 IST IST The Trump family's latest venture blends politics, business, and branding into one glossy handset. But scratch the surface, and questions about manufacturing, regulation, and credibility quickly pile up What do you get when you mix a political icon, a $499 gold-coloured smartphone, and a mobile plan named after a US President? A product called Trump Mobile — launched with fanfare by Donald Trump Jr and Eric Trump on the anniversary of their father's first presidential run.
