New US-Made Smartphone Faces Tough Competition

A California-based company has introduced a smartphone that is predominantly manufactured in the US. However, it relies on outdated parts and is unable to compete effectively with the iPhone.

The Liberty Phone prioritizes privacy. This high-tech startup has assembled, tested, and packaged the phone in the US, and even the printed circuit boards (PCBs) are made domestically.

All software development, including the Pureos operating system, occurs in the US. The device features a central circuit board connecting all major components, and the main board’s modules are also locally produced.

Yet, critical parts like the chassis, cameras, modems, and WiFi/Bluetooth modules are mostly sourced from suppliers in China and India. The display and battery come from China, while the camera is manufactured in Korea.

“I’ve spent a decade trying to support US manufacturing,” says Todd Weaver, founder and CEO of Purism.

The processors come from a Dutch company, although the chips can be made in various places such as Korea or other parts of Asia and Europe.

“We don’t yet have a complete supply chain for all parts. We’re working on it,” he adds.

Weaver mentioned that only four people hand assemble the phones, allowing Purism to produce about 10,000 units per month. So far, they’ve sold fewer than 100,000 phones since the company’s inception in 2014. Weaver indicated it took six years to move from the concept of this phone to actual production.

For context, Apple’s manufacturing partner, Foxconn, can produce up to 500,000 iPhones a day at peak times, meaning around 10,000 phones every 12 minutes.

Purism emphasizes local manufacturing for critical security elements, while recognizing the complexities of a global supply chain.

While it cannot match larger tech companies in price or features, the Liberty Phone appeals to consumers prioritizing security and privacy over big companies like Apple and Google.

Running on Pureos, which is an open-source Linux-based system, the phone includes a hardware kill switch to disconnect the microphone, camera, Wi-Fi, Bluetooth, and other components.

However, the operating system supports only basic functionalities like calls, texts, web browsing, and simple applications.

A significant portion of Liberty Phone buyers consists of US government employees, attracted by its strong security and privacy features.

Weaver describes their typical customer as a “security nerd,” parents looking to monitor their kids, seniors, or anyone wanting to stay away from major tech companies. “People looking for devices for prying eyes aren’t our market,” he remarks.

Former President Trump has consistently urged Apple and other tech giants to manufacture in the US, threatening tariffs on overseas-produced iPhones.

He has criticized Apple’s CEO Tim Cook for expanding production in India, arguing that the iPhones sold in the US should be made domestically.

Despite Apple investing in US infrastructure and AI, experts say relocating full iPhone production to the US poses significant financial and logistical challenges.

Meanwhile, Trump’s organization has launched a new Android-powered smartphone called the T1, marketed as “made in the US” but analysts suspect it is primarily produced by Chinese manufacturers.

This new phone, emerging from a licensing agreement, aims to reach conservative consumers looking for US-centric alternatives.

Apple sells hundreds of millions of iPhones each month, with fluctuations based on varying factors. In the first nine months of 2024 alone, the company shipped about 151.3 million devices, averaging 16.8 million a month.

In contrast, Google reportedly produces around 43,000 to 45,000 Pixel smartphones monthly, primarily in India. Samsung’s monthly output reaches about 20 million smartphones, with peak production for specific models like the Galaxy S25 series.

Apple’s iPhones are priced from $599 for the basic model to over $1,399 for premium options. Google’s Pixel series ranges from $499 to $1,799, while Samsung’s Galaxy S25 starts around $799, with higher-end models going up to $1,419.

Most iPhones are built in China, whereas Google Pixels are manufactured in both Vietnam and China, and Samsung’s devices come from Korea, Vietnam, and India.

The company is looking to comment further on Weaver and Purism’s initiatives.