The Hidden Economy of iPhones

Image courtesy of wirestock on Freepik

As of last year, over 70% of the world’s population owned a mobile phone of some kind; that’s over 5.8 billion people worldwide.

That only represents unique mobile phone users, but there are over 8.5 billion active mobile subscriptions, as many people have multiple phones. The first mobile phones were created in 1973, and while they have changed a lot in the last 50 years, with the global average mobile phone screen time being over three and a half hours, they have become a vital part of most people’s daily lives. The average price of these phones can range from $350–$400 worldwide, with prices in regions such as Asia and North America ranging from $650–$800, driven by large companies such as Apple. There are more than 1.6 billion new mobile phones sold each year, and over 600 different models released each year from all the mobile phone companies. But what is the hidden side of these mobile phones that we all carry around in our pockets?

For Apple specifically, there is a large focus on the profit margin for each phone, as well as an emphasis on customer service. Their phones are manufactured through low-cost Asian supply chains and then sold in North America at significantly higher prices, often increased further through add-ons such as extra storage and AppleCare. Many of these mobile devices are made in Chinese factories such as Foxconn. These companies are known for long working hours, low wages, and unsafe conditions, with workers often living in crowded dormitories and facing extremely high production quotas. The intense demand for new phones also increases pressure on manufacturing workers in countries such as China.

A major market for Apple is customers who go to Apple Stores to repair their devices. Especially in companies like Apple, intense brand loyalty keeps customers continuously buying new phones as well as other devices they offer, such as computers, iPads, watches, and headphones. Each device is given intense hype at launch, influencing more customers to buy products that they may not need. Many companies also encourage the purchase of new phones every year by releasing ​​software updates that slow older devices and limit battery lifespan, making many phones unusable less than five years after purchase.

Additionally, mobile phones are made from over 60 different elements, including precious metals, rare earth elements, and plastic. The main components include the lithium battery, silicon, and copper used in the circuits, as well as rare earth elements such as neodymium and dysprosium, which are used for the speakers and color displays on iPhones. These rare earth metals are found in the crust of the Earth, and while they are not sparse in composition, the deposits can be difficult to mine, separate, and process. However, many of these rare earth elements are rarely recycled. Furthermore, most of the mining and refining of these minerals is done in China, which can create a scarcity of these minerals in the rest of the world. Some of these minerals are not only used in phone batteries but also in electric vehicles and other electronic devices.

Other countries that have large mining industries of these elements include the Democratic Republic of Congo (DRC), Australia, Chile, and Argentina. These countries experience many environmental impacts that can affect not only their country and their people, but the whole world. For example, lithium mining in countries like Chile and Argentina uses massive amounts of water, which can have lasting impacts on their people and the environment surrounding the mines. Cobalt mining in the DRC has also been linked to other severe environmental damage and unsafe labor conditions, including reports of child labour being used in these mines. These mining operations all produce toxic waste and chemical runoff that affects local ecosystems.

On top of this, the cellular plants used by all mobile phones to complete calls, send texts, and stream media use a huge amount of power from intensive data centers and create more greenhouse gas emissions. While most of mobile phones’ carbon emissions come from production, there is still a measurable amount of environmental impact from their usage, amplified by “unlimited data plans” that encourage increased usage of mobile devices. On top of greenhouse gas emissions, over 50 million metric tons of electronic waste are produced each year globally from mobile phone production. With new phones coming out each year, many old phones end up in landfills and are unable to decompose.

The sleek design and constant innovation of mobile phones often distract consumers from the global impact of their devices.

These impacts range from toxic runoff from rare earth element mines to poor working conditions and growing electronic waste. The excessive water usage of mining operations, along with the carbon footprint created by the manufacturing and shipping of cellphones, contributes to the environmental damage caused by these devices.

The true price of an iPhone is not just what customers pay, but the lasting impact it leaves on our world.

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