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By Hugh Cameron
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The Trump family's latest venture, an "America first" mobile network and self-branded phone will "eventually" be built in the U.S., leaving questions about where the new "T1" phone will be manufactured ahead of its launch later this year.
In an interview on Monday, Eric Trump, vice president of the Trump Organization, said that it was possible for the phones to be built in the U.S., and that "eventually all the phones will be built in the United States."
Newsweek has reached out to Trump Mobile, the newly formed company selling both the phones and the mobile service, via email for comment.
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Why It Matters
On the backdrop of the White House's "America First" agenda, the feasibility of a purely American-made smartphone by The Trump Organization, the real estate-focused company now operated by the president's two eldest sons, has been questioned by experts, given the country's higher labor costs, outmoded manufacturing capabilities and the reliance of even domestically made phones on imported components.
What To Know
On Monday, the Trump Organization announced the launch of Trump Mobile and its flagship cellular service—"The 47 Plan"—which offers users 5G data service, unlimited calls and texts and 24/7 roadside assistance for the price of $47.45 per month, a reference to Trump's election as the 45th and 47th president.
In addition, the new gold-colored "T1" smartphone is currently available for pre-order on the Trump Mobile website for $499, and is set to be released in September. In its press release on Monday, the Trump Organization said that it would be releasing the T1 Phone in August.
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In the announcement, the Trump Organization described the T1 phone as "proudly designed and built in the United States."
However, this claim has already been met with scrutiny from tech and supply chain experts, who doubt whether a phone could be domestically manufactured in this timeframe or at the advertised price point.
Nilay Patel, co-founder of technology news website The Verge*,* told CNBC: "I don't think they're going to sell a phone that has anything to do with the United States on any kind of timeline that makes sense." He added that the only phone which could be sold for $499 by September would be "undoubtedly a rebranded Chinese Android phone."
"Barring miracles, building a smartphone entirely in the U.S. by September is all but impossible," Tinglong Dai, professor at the Johns Hopkins Carey Business School, told Newsweek.
"The U.S. doesn't currently have the supply chain to support that. We don't make key components like screens, memory chips, or camera modules here at scale," he added. "Even final assembly would be a stretch without significant lead time and preparation."
The Trump Organization has seen a surge in business since the president's inauguration in January. The ventures announced, as well as the expansion into new sectors like cryptocurrency and telecommunications, have drawn scrutiny from ethics watchdogs who have raised concerns over potential conflicts of interest arising from the use of the president's brand and office for financial gain. However, the White House has maintained that President Trump has sufficiently distanced himself from his business dealings.
What People Are Saying
Eric Trump, vice president of the Trump Organization, said in a statement: "I'm incredibly excited to step into this new digital space, hard-working Americans deserve a wireless service that's affordable, reflects their values, and delivers reliable quality they can count on. We're especially proud to offer free long-distance calling to our military members and their families — because those serving overseas should always be able to stay connected to the people they love back home."
In an interview with Right Side Broadcasting Network, Eric Trump said: "In hopefully in the next six months we're going to be manufacturing the phones in the United States. And so it's kind of, you know, we'll all be done here in our shores, employing American people. At $47 a month, we're going to do it cheaper, faster, better, safer than any of the other providers."
He added that customer service for Trump Mobile would be provided from offices in St. Louis, Missouri "and not Bangladesh, not India, not one of these places."
Leo Gebbie, analyst at tech research and advisory firm CCS Insight, told the BBC that the U.S. does not currently possess the "high-tech supply chain" needed for domestic smartphone manufacturing.
Meghan Faulkner, communications director for Citizens for Responsibility and Ethics in Washington (CREW), told the outlet: "It's unbelievable that the Trump family has created yet another way for President Trump to personally profit while in office."
Tinglong Dai, professor at the Johns Hopkins Carey Business School, told Newsweek: "If the claim is 'Made in USA,' the [Federal Trade Commission] has a very strict standard: all or virtually all parts and processing must be domestic."
"That rules out any meaningful reliance on foreign suppliers, which makes the claim unrealistic under current conditions," he added. "The Trump Organization's 'built in America' language isn't an official designation, so that may be the direction they're taking."
What Happens Next?
The Trump Organization and Trump Mobile have yet to confirm where the phone will be manufactured in the U.S, and whether these will be domestically made in time for the launch later this year.
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