There are forecasts that Donald Trump's family's anticipated $499 (approximately 680,000 won) smartphone, 'Trump Phone (T1),' will not be produced and released as planned in August. While the Trump family has promoted it as a "proud smartphone designed and manufactured in America" with high specifications, criticisms suggest that this is practically impossible due to a lack of related infrastructure and technology.
On the 16th (local time), major foreign media reported that the initial production of the T1 is likely to take place overseas, contrary to previous announcements. Eric Trump, Donald Trump's second son, appeared on a podcast and stated that "eventually" it will be possible to manufacture the T1 in the U.S., implying the possibility of production abroad.
Earlier that day, the Trump Organization, Donald Trump's family business, announced the release of a domestic smartphone under the mobile communication brand 'Trump Mobile.' The company revealed the design of the golden smartphone T1 in a press release, stating it would be manufactured in Alabama, California, and Florida in August and sold for $499 starting in September. It is estimated that the Trump Organization will not be involved in the actual design or manufacturing of the device.
However, industry analyses suggest that such plans are realistically unfeasible. To achieve high-performance specifications at a price of $499, involving Chinese manufacturers would be inevitable. According to the Wall Street Journal, at this point, the only phone manufacturers that can deliver the specifications T1 has proposed at that price are China's Xiaomi and Oppo.
In fact, the specifications of the T1 are comparable to those of the iPhone. According to the press release, the T1 features a ▲6.8-inch AMOLED (active-matrix organic light-emitting diode) display ▲5000mAh battery ▲256GB storage ▲50MP main camera and 16MP front camera ▲built-in fingerprint sensor within the display, evaluated similarly or at a higher level compared to the $1,199 (approximately 1.63 million won) iPhone 16 Pro Max.
The problem is that there is a stark lack of production infrastructure and skilled labor to manufacture smartphones of such caliber in the U.S. After Trump announced a large-scale tariff policy in April, an investigation by the Wall Street Journal involving multiple supply chain experts suggested that producing smartphones at the iPhone level in the U.S. would require billions of dollars in investment over several years. High labor and facility construction expenses further limit cost-cutting in manufacturing.
Components such as displays (from Korea), cameras (from Japan), and semiconductors (from China and Taiwan) are expected to see price increases as well. Tinglong Dai, a professor at Johns Hopkins University, noted that "it is currently impossible to produce all of these components in the U.S." and pointed out that "the current manufacturing policy in the U.S. is focused on technology-intensive industries like semiconductors and medical devices rather than smartphones."
On the other hand, wireless communication services themselves are seen as a business that can be realistically realized. The U.S. mobile communication market is structured such that existing telecommunications companies wholesale network lines to virtual mobile network operators (MVNOs). Mint Mobile, which is partially owned by actor Ryan Reynolds, has also grown under a similar business model.
The Trump Organization has announced a representative plan called '47 Plan,' offering unlimited currency, text, and 5G data for $47.45 (approximately 64,600 won) a month, along with roadside emergency services and telemedicine services.