Trump's Plan To Take On Apple, Samsung With A Smartphone Is A 'Fairytale': Dan Ives Warns — It Could Be A Money-Loser For His Company - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), Apple (NASDAQ:AAPL)

After President Donald Trump‘s sons unveiled Trump Mobile on Monday, Wedbush analyst Daniel Ives described manufacturing phones in the U.S. as “a non-starter,” deeming it unprofitable.

What Happened: Dan Ives, in an X post, highlighted his conversation with ABC News, where he confirmed that trying to manufacture a phone in the U.S. wasn’t a profitable venture.

“Could the Trump organization produce phones, a few thousand, and probably lose money? Yeah! But the reality to produce phones in the U.S. is a fairytale,” he said.

Eric Trump and Donald Jr. Trump introduced Trump Mobile at a Monday event held at Trump Tower in New York, representing the latest entrepreneurial endeavor by the president's family.

The service will function as a mobile virtual network operator, leveraging the network infrastructure of T-Mobile US Inc. TMUS via Liberty Mobile.

Why It Matters: Ives has previously pointed out the similar extra costs that Tim Cook-run Apple Inc. AAPL could face to manufacture iPhones in the U.S.

In an April 3 post, he said, “If you like a $3,500 iPhone, we should build them in the US or a $1,000 iPhone built in China.”

He said that the logistics of moving iPhone manufacturing to the U.S. would be a “non-starter” at the current price point. “For U.S. consumers, the reality of a $1,000 iPhone being one of the best-made consumer products on the planet would disappear.”

Following his presidency, Trump and his family have expanded their business ventures beyond real estate into various sectors. Their latest launch is a mobile network, adding to a portfolio that already includes a social media platform, NFTs, bibles, sneakers, and a meme cryptocurrency.

Earlier in May, President Trump threatened to impose a 25% tariff on iPhones and confirmed that the same would apply to Samsung and other smartphone makers operating outside the U.S.

Price Action: The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, fell in premarket on Tuesday. The SPY was down 0.44% at $600.00, while the QQQ declined 0.47% to $531.76, according to Benzinga Pro data.