In a world captivated by smartphones and social media, many are yearning for a simpler time. Cat Goetze, a 29-year-old entrepreneur based in Los Angeles, has tapped into this nostalgia with her innovative venture, Physical Phones. This Bluetooth-enabled landline phone company saw remarkable success, generating over $789,000 in sales in just 2025, according to documents reviewed by CNBC Make It. However, Goetze’s journey has been anything but overnight.
The spark for Physical Phones ignited in 2023 during the pandemic, as Goetze sought to minimize her screen time. Reflecting on her childhood, where she and her family shared a landline, she fondly recalled a school booklet filled with classmates’ phone numbers, which even led to mischievous prank calls. Faced with the reality of installing a traditional landline in her home-a task that involved obtaining a new number and dealing with an $80 monthly service fee-Goetze decided to find a modern solution.
Leveraging her background in science, technology, and society from Stanford, she began to prototype a system that would link a landline phone to her smartphone. By 2023, she crafted her first prototype-a pink handset-and posted her creation on TikTok. Initially, the response was tepid, with little engagement or sales. Goetze commented, “I wasn’t really trying to make money off of it anyways,” deeming the project a fun experiment.
Fast forward to 2025, Goetze had cultivated a following through her online brand, CatGPT, where she discusses topics related to AI and digital wellness. Noticing a growing conversation around smartphone dependency, she revisited her landline prototype. A TikTok video posted in July 2025 went viral, amassing over 8 million views and generating $120,000 in sales within the first three days.
The success of Physical Phones stems from its unique functionality-these battery-powered devices connect to smartphones via Bluetooth, allowing users to receive calls through the landline as if it were a mobile phone. It also supports calls through popular apps like FaceTime and WhatsApp. Open for pre-orders in July 2025, the initial production round was fully funded, covering essential costs for warehousing and logistics.
Goetze shared that manufacturing was one of the most challenging aspects of launching Physical Phones, leading to significant delays and unexpected tariff fees. Despite these hurdles, the team worked to meet the holiday demand by opting for expedited shipping, investing around $74,000 to import their phones quickly. This decision significantly impacted profit margins but exemplified Goetze’s commitment to customer satisfaction.
With three styles available-handset, wall mount, and rotary-ranging from $90 to $110, Physical Phones has sold over 7,500 devices and accrued about $439,000 in profit since its inception. Goetze reinvests these earnings back into the company, focusing on research and development for new models, while she supports herself through her media business, CatGPT.
In a strategic move to focus on growth, Goetze recently appointed Josh Silverman as CEO, allowing her to concentrate on expanding the brand’s reach. She envisions 2026 as a pivotal year for selling her products in retail, as well as launching Cat Labs, a new creator-focused product studio. Balancing inventory strategies, she weighs the benefits of traditional e-commerce versus drop models, all in pursuit of understanding and meeting audience demands.
With an eye on the future, Goetze embodies the spirit of a modern creator-founder, keenly attuned to the cultural currents that shape consumer desires.
Original Source: https://www.cnbc.com/2026/02/21/how-this-29-year-old-brought-in-789k-in-2025-selling-landline-phones.html
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Publish Date: 2026-02-21 19:30:00
