Daniel Ives Warns Trump Mobile Phone Plan Could be a Money Loser

Renowned Wall Street analyst Daniel Ives from Wedbush Securities stated that President Donald Trump’s new mobile phone plan (DJT) could be a money-losing venture. He explained his reasoning by saying, “the reality to produce phones in the U.S. is a fairytale.” Ives highlighted these comments, which he made in a conversation with ABC News, in a recent post on X.

Ives has previously stated that manufacturing a smartphone in the U.S. is a “non-starter,” commenting on Trump’s push for Apple (AAPL) to manufacture all iPhones domestically.

Trump Mobile Challenges Apple and Samsung

Trump’s sons unveiled Trump Mobile on Monday, June 16, a smartphone and mobile phone service in partnership with T-Mobile US (TMUS). Trump Mobile’s $499 gold, Trump branded phone is a clear competitor to existing offerings from Apple’s iPhones and Samsung’s (SSNLF) Android devices.

Ironically, the Trump mobile device will not be fully manufactured in the U.S., despite Trump’s well-known push for domestic manufacturing. Notably, while the phone is expected to be primarily manufactured in China and only assembled in the U.S., it may still qualify for the “Made in America” label by leveraging current trade loopholes.

At the same time, the launch raises ethical questions, mainly related to potential conflicts of interest in the highly-regulated telecom sector and to issues of transparency. The new mobile phone plan is expected to launch this September, with preorders already open and a $100 deposit required.

Following Trump’s election as the U.S. President, his family has ventured into several businesses beyond its real estate portfolio, such as a social media platform, NFTs, sneakers, and even cryptocurrency. It remains to be seen whether the President will be able to successfully conceptualize and implement his domestic manufacturing push in his personal business ventures.

What Is the Future of DJT Stock?

Currently, no analysts have issued ratings for Truth Social stock. Turning to its performance, DJT stock is down a notable 45.7% so far this year. The Trump family’s various business ventures have done little to boost the stock, as investor enthusiasm remains low.