This is a classic example of a Surrealist object, made from the conjunction of items not normally associated with each other, resulting in something both playful and menacing. Dalí believed that such objects could reveal the secret desires of the unconscious. Lobsters and telephones had strong sexual connotations for Dalí. The telephone appears in certain paintings of the late 1930s such as Mountain Lake (Tate), and the lobster appears in drawings and designs, usually associated with erotic pleasure and pain. For the 1939 New York World's Fair, Dalí created a multi-media experience entitled Dream of Venus, which consisted in part of dressing live nude models in "costumes" made of fresh seafood, an event photographed by Horst P. Horst and George Platt Lynes. A lobster was used by the artist to cover the female sexual organs of his models. Dalí often drew a close analogy between food and sex. In Lobster Telephone, the crustacean's tail, where its sexual parts are located, is placed directly over the mouthpiece.

Dalí produced five examples of the color version of his telephone. One was on display at the Dalí Universe in London; a second can be found at the Museum für Kommunikation Frankfurt; another is owned by the Edward James Foundation; a fourth is at the National Gallery of Australia; and the fifth example is in the collection of Tate Modern, London. Dalí also produced an off-white version of his telephone. Of the six known examples, one is owned by the Minneapolis Institute of Arts; another by the Salvador Dalí Museum in St. Petersburg, Florida. A third example is held at Centro Cultural de Belém, in Portugal, and is owned by the art collector Joe Berardo. Another example can be viewed at the Johannesburg Art Gallery in Johannesburg, South Africa. Museum Boijmans Van Beuningen also has a phone in their collection in Rotterdam, The Netherlands. In March 2018, Arts minister Michael Ellis placed a temporary export ban on an off-white Lobster Telephone after it was sold by the Edward James Foundation; to allow British collections or collectors to match the purchase price of £853,047. The telephone was successfully acquired by the National Galleries of Scotland in December 2018 and is displayed at the Scottish National Gallery of Modern Art.