The family of U.S. President Donald Trump, through its Trump Organization, said on Monday it will launch a mobile phone company, the latest in a string of ventures that have been announced while the Republican is in the White House despite concerns that the president could mold public policy for personal gain.
Eric Trump, one of President Donald Trump’s sons who will run the business, said that the new company would build its own phones in the U.S. and maintain a call center in the country as well.
A self-branded mobile service comes with a $499 smartphone, dubbed Trump Mobile, a Reuters report said, signaling a new effort to court conservative consumers with a wireless service positioned as an alternative to major telecom providers.
The announcement of the new mobile phone company and service follows several real estate deals for towers and resorts in the Middle East, including a golf development in Qatar announced in April. A $1.5 billion partnership to build golf courses, hotels and real estate projects in Vietnam was approved last month, but the deal was in the works before Trump was elected.
Trump criticized Apple last month because it planned to make most of its U.S. iPhones in India, and threatened to slap a 25% tariff on the devices unless the tech giant starts building the product in its home country.
"We are going to be introducing an entire package of products where people can come and they can get telemedicine on their phones for one flat monthly fee, roadside assistance on their cars, unlimited texting to 100 countries around the world," said the president's eldest son, Donald Trump Jr., announcing the product at Trump Tower in New York.
The Trump family, long known for its real estate empire, luxury hotels and golf resorts, has in recent years ventured into newer arenas, including digital media and cryptocurrency.
The Trump Organization, which is the main holding entity for most of the U.S. president's business ventures, said ahead of Trump's inauguration that control of the company would be handed to his children, replicating the arrangement from his first term, though concerns about potential conflicts of interest remain.
A website that went live after the announcement included details of the new Trump-branded smartphone that will be available from September, and a $47.45 a month subscription plan to the new network.
DTTM Operations – the entity managing President Trump's trademarks – has filed applications to use his name and the term "T1" for telecom-related services.
The filings, submitted Thursday to the U.S. Patent and Trademark Office, cover mobile phones, accessories like cases and chargers, wireless telephone services and possibly even retail stores.
The smartphone industry in the U.S. is among the most saturated and competitive in the world, with leading global players Apple and Samsung dominating the market.
More than 60 million smartphones are purchased annually by American consumers, but nearly all of these devices are manufactured abroad: primarily in China, South Korea and increasingly in India and Vietnam.
Despite the strength of U.S.-based tech brands, there is no significant domestic smartphone production infrastructure, mainly due to high labor costs, supply chain complexity and reliance on overseas component sourcing.
The U.S. mobile network market is dominated by three national carriers: Verizon, AT&T and T-Mobile, which control over 95% of the wireless market. These companies operate massive, capital-intensive infrastructures and offer bundled services to tens of millions of subscribers.
