NEW YORK – Experts challenge the Trump Organization’s claim that its new $499 gold-colored smartphone can be entirely manufactured in the United States, raising questions about feasibility and ethics.
The Trump Organization’s announcement of a gold-colored handset has sparked skepticism among industry analysts. The phone, priced at $499, has been touted as entirely made in the USA, but experts argue this is “virtually impossible.” Meghan Faulkner from Citizens for Responsibility and Ethics in Washington criticized the venture, stating, “It’s unbelievable that the Trump family has created yet another way for President Trump to personally profit while in office.”
Immediate Impact
The smartphone will be paired with a mobile service costing $47.45 monthly, a nod to Trump serving as the 47th and 45th president. Despite Trump’s assurance of placing his business interests in a trust, concerns persist about potential conflicts of interest and ethical implications.
Key Details Emerge
The Trump family has yet to disclose the company responsible for manufacturing the phone in the U.S. Eric Trump hinted on “The Benny Show” podcast that while the phones may eventually be made in America, the initial release might not be.
Industry Response
Technology experts doubt the feasibility of the “built in the United States” claim. Prof Tinglong Dai from Johns Hopkins’ Carey Business School remarked, “They don’t even have a working prototype. It’s extremely unlikely.” He emphasized the need for economies of scale and sustainable demand.
Prof Dai: “You would have to have a miracle. You would need to have economies of scale.”
By the Numbers
- Gold-colored handset priced at $499
- Monthly service fee: $47.45
- Trump’s net worth: $5.1 billion, more than double last year
Background Context
This development builds on Trump’s longstanding strategy of leveraging his brand for financial gain. His recent financial disclosure indicates earnings exceeding $600 million last year, with significant contributions from Trump-branded products.
Expert Analysis
Analyst Leo Gebbie of CCS Insight stated, “The US simply does not have the high-tech supply chain required for smartphone assembly.” He suggested that assembling the device domestically with imported parts might be the most feasible approach.
Mr. Gebbie: “Assembling in the US with imported parts might be the most likely outcome.”
What Comes Next
The announcement was light on specifics, including the business partner managing the service and licensing the name. The Trump Organization did not respond to inquiries about its business partner or the “built in the United States” claim.
The timing is particularly significant as Trump pressures Apple to manufacture iPhones in the US, threatening a 25% import tax on non-domestic phones.
Meanwhile, the idea of a Trump-related smartphone has drawn mixed reactions online, with some eager to purchase and others mocking the concept. As this venture unfolds, industry observers will be watching closely to see how it impacts Trump’s business and political landscape.
