US President Donald Trump’s Trump Organisation gathered all the attention amidst the tensions in Los Angeles. Trump’s self-branded mobile network, Trump Mobile, and the accompanying T1 Phone has immediately drawn skepticism from industry experts regarding its “Made in the USA” claim. The gold-colored smartphone, set to retail at $499, faces significant questions about its feasibility of being entirely manufactured within the United States.
Speaking to the BBC, one industry analyst stated that it would be virtually impossible for such a device to be wholly built in the US Professor Tinglong Dai of Johns Hopkins’ Carey Business School noted, “They don’t even have a working prototype. It’s extremely unlikely. You would have to have a miracle.” He emphasised the lack of necessary economies of scale and sustainable demand in the US for smartphone manufacturing from scratch.
Analyst Leo Gebbie of CCS Insight further highlighted that the US currently “simply does not have the high-tech supply chain” required for complete smartphone assembly, especially not for an August release. Gebbie suggested that the device could potentially be “assembled in the US with parts imported from abroad,” which he believes is the “most likely outcome that lets the T1 claim American sovereignty.”
While Eric Trump stated that “Eventually, all the phones can be built in the United States of America,” his phrasing implied that initial models might not be fully produced in the US.
Trump Mobile raises ethical questions too
The new Trump Mobile venture has also ignited criticism regarding potential ethical conflicts. Meghan Faulkner, communications director for Citizens for Responsibility and Ethics in Washington, stated, “It’s unbelievable that the Trump family has created yet another way for President Trump to personally profit while in office.”
While Trump has publicly stated that his business interests are managed by his children through a trust, and the White House maintains he acts in the nation’s best interests, critics like Ms. Faulkner raise familiar concerns. It is said that new business will attract customers seeking influence with Trump and how the President might navigate policies and regulations for an industry in which his family now holds a stake.
The Trump Organisation is yet to issue a statement on this.