Redesigning the iPhone for Circularity

(Circular Design Research Project – Consumer Electronics Industry)

CIRCULAR DESIGN TEAM PROJECT REPORT

Course: GBM500 – Spring 2025​

Institution: San Francisco Bay University​

Team: Team 3

Submission Date: 04/28/2025

Table of Contents

Introduction to the Report ...................................................... 3

Section 1: Current State of the Industry ....................................... 4

Section 2: Current State of Company Product Offerings ................. 7

Section 3: Driving Forces Towards Sustainability ......................... 10

Section 4: Restraining Forces Against Sustainability ..................... 15

Section 5: Circular Design Approach and System Map ................... 19

Final Report Conclusion and Recommendations ......................... 23

References ........................................................................ 24
Introduction to the Report

The consumer electronics industry is evolving rapidly, fueled by constant innovation and

increasing global demand. Yet behind the sleek designs and advanced features lies a growing

environmental cost—resource depletion, e-waste, and carbon emissions. Products like the

iPhone, while transformative in modern life, also contribute significantly to this unsustainable

cycle of production and disposal.

This report investigates how the iPhone, as a flagship product of Apple Inc., can be

redesigned through circular design principles. It explores the state of the consumer

electronics industry, evaluates Apple’s current sustainability efforts, and identifies both the

driving and restraining forces influencing its progress. By reimagining how the iPhone is

sourced, designed, used, and recovered, this project outlines a practical and forward-looking

strategy for building a more responsible and regenerative product lifecycle.

Section 1: Current State of the Industry

By MD Al Jakaria

Introduction

The consumer electronics industry is one of the fastest-growing sectors globally, yet it faces

increasing scrutiny for its environmental impact. As devices like smartphones, laptops, and

wearable technology become essential to daily life, concerns about resource depletion, energy
consumption, and electronic waste have intensified. In response, industry leaders are

beginning to shift toward more sustainable practices, with a focus on circular design

principles that prioritize durability, recyclability, and resource efficiency. This section

examines the current environmental challenges and sustainability efforts shaping the

consumer electronics industry today.

1.1 Environmental Challenges in Consumer Electronics

1.1.1 Electronic Waste and Disposal Issues

The consumer electronics industry generates an enormous amount of waste. According to the

United Nations' Global E-Waste Monitor 2020, only 17.4% of global e-waste is formally

collected and recycled, while the rest often ends up in landfills or is improperly handled

(Forti et al., 2020).​

Products are typically designed for rapid obsolescence, and frequent upgrades by consumers

exacerbate the issue. Toxic substances such as lead, mercury, and cadmium present in devices

pose significant threats to human health and the environment when not properly managed.

New regulations like the European Union’s Waste Electrical and Electronic Equipment

(WEEE) Directive are pressuring manufacturers to take greater responsibility for the

end-of-life management of their products (European Commission, 2022).

1.1.2 Resource Depletion and Mining Impacts

The production of electronic devices relies heavily on finite resources such as cobalt, lithium,

gold, and rare earth elements. Mining these materials often leads to significant environmental

degradation, including deforestation, water pollution, and loss of biodiversity (World

Economic Forum, 2021).​

Additionally, mining operations in developing countries frequently involve unethical labor

practices. The increasing scarcity and cost of raw materials are pushing the industry to find

sustainable alternatives such as recycled content and bio-based materials.

1.2 Current Sustainability Trends in the Industry

1.2.1 Rise of Circular Economy Models

More companies are adopting circular economy principles to minimize waste and maximize

the value extracted from resources. Circular models emphasize reuse, refurbishment,

remanufacturing, and recycling to extend product life cycles.​

Leading brands like Dell, HP, and Apple have launched take-back and recycling programs to

recover valuable materials and reduce reliance on virgin resources (Ellen MacArthur

Foundation, 2023).

Product-as-a-Service (PaaS) models are also emerging, where companies retain ownership of

devices and customers pay for usage rather than ownership, encouraging better design for

longevity and recyclability.

1.2.2 Sustainable Material Innovation

Manufacturers are investing in sustainable material alternatives to traditional plastics and

metals. For example, biodegradable polymers, recycled metals, and bio-based composites are

increasingly being used in electronic devices (Green Electronics Council, 2022).

Research into eco-friendly alternatives not only addresses resource scarcity but also helps

companies reduce their overall carbon footprint and meet growing consumer demand for

environmentally responsible products.

1.2.3 Energy Efficiency Improvements

Advancements in energy-efficient components, such as low-power processors, OLED

displays, and optimized battery technologies, are helping reduce the environmental impact of

consumer electronics during the usage phase.​

Certification programs like ENERGY STAR continue to encourage manufacturers to

develop devices that consume less energy without sacrificing performance (U.S.

Environmental Protection Agency, 2022).

1.3 Regulatory and Market Pressures

1.3.1 Stricter Environmental Regulations

Governments around the world are implementing stricter environmental regulations, forcing

companies to design products that are more sustainable. For example, the European Green

Deal sets ambitious targets for recycling rates and carbon neutrality (European Commission,

2020).​

Compliance with environmental standards is no longer optional but a business necessity for

accessing key global markets.

1.3.2 Consumer Demand for Sustainability

Modern consumers, particularly Millennials and Gen Z, are increasingly favoring brands that

demonstrate environmental responsibility. A Nielsen survey found that 73% of global

consumers would change their consumption habits to reduce their environmental impact

(Nielsen, 2019).​

This growing consumer awareness is creating market incentives for companies to prioritize

sustainable design, transparent sourcing, and ethical manufacturing practices.

Conclusion

The consumer electronics industry is at a pivotal moment. Rising environmental challenges,

resource scarcity, regulatory changes, and evolving consumer expectations are pushing

companies toward more sustainable practices. Circular design principles—focusing on

reducing waste, maximizing resource efficiency, and promoting product longevity—are

becoming central to the industry's evolution. Companies that lead in adopting these practices

will not only enhance their competitiveness but also contribute meaningfully to global

sustainability goals.

Section 2: Current State of Company Product Offerings.

By Prathik raj kolapudi

Introduction

Apple is a global leader in consumer electronics, best known for its innovative and premium

products such as the iPhone. As part of the rapidly evolving consumer electronics industry,

Apple faces increasing scrutiny over its environmental footprint and product lifecycle

strategies. In recent years, the company has introduced various initiatives to enhance

sustainability and extend product longevity. However, significant challenges remain,

particularly regarding repairability, material sourcing, and waste management. This section

examines the current state of Apple's iPhone production processes, sustainability efforts, and

areas for potential improvement within a circular design framework.

2.1 Global Manufacturing and Supply Chain Operations

Apple’s iPhone production relies on an extensive, complex global supply chain involving

more than 200 suppliers across 43 countries (Apple, 2023). Final assembly is predominantly

conducted in China by companies such as Foxconn and Pegatron. Apple's supply chain

management emphasizes efficiency, quality control, and ethical sourcing, although challenges

persist in ensuring full compliance with labor and environmental standards.

The company has made efforts to enhance the transparency of its operations by publishing

annual Supplier Responsibility Progress Reports. These reports detail audits, corrective

actions, and partnerships aimed at promoting sustainability within the supply chain.

Nonetheless, critics argue that supply chain emissions and ethical concerns around mining

practices, especially for cobalt and rare earth elements, remain difficult to fully address

(Amnesty International, 2023).

2.2 Material Sourcing and Device Design Philosophy

Apple has increasingly incorporated recycled and low-carbon materials into its iPhone

designs. Newer models, such as the iPhone 15, feature 100% recycled aluminum enclosures

and utilize recycled rare earth elements in components like magnets and the Taptic Engine

(Apple, 2023). The company’s design philosophy, however, traditionally prioritizes

compactness, seamless integration, and performance over modularity.

As a result, iPhones remain challenging to repair or upgrade. Batteries are glued in place,

proprietary screws complicate disassembly, and software locks often prevent third-party

repairs (iFixit, 2024). This approach limits opportunities for consumers to independently

maintain their devices, running counter to broader circular economy principles emphasizing

repairability and longevity.

2.3 Sustainability Initiatives and Recycling Programs

Apple’s environmental strategy includes multiple initiatives designed to minimize waste and

extend the life of its products. The Apple Trade-In program enables customers to return old

devices for credit toward new purchases or recycling. Refurbished devices are resold at lower

prices, reducing the need for raw material extraction and manufacturing emissions (Apple,

2021).

The company has also invested heavily in recycling technologies. Robotics systems such as

Daisy and Dave can disassemble iPhones and recover valuable materials like gold, cobalt,

and tungsten with high precision (Apple, 2022). These innovations contribute to Apple’s

broader goal of creating a closed-loop supply chain in which no new materials are mined for

production. However, the scale of such programs remains relatively small compared to the

volume of products sold annually.

2.4 Repairability and Product Lifespan Challenges

While Apple has introduced a "Self Service Repair" program that allows consumers to access

genuine parts and repair guides, the process remains complicated and expensive for the

average user (The Verge, 2023). Repairing an iPhone often requires specialized tools and

technical expertise, discouraging broader participation.

Moreover, the fast-paced release cycle of new models, typically on an annual basis, promotes

a culture of frequent upgrades rather than long-term device use. According to industry data,

the average smartphone replacement cycle is around 2.75 years (Statista Research

Department, 2023), underscoring the tension between innovation-driven marketing and

sustainability objectives.

Conclusion
Apple’s current iPhone production practices represent a significant step toward environmental

responsibility, particularly in the use of recycled materials and energy-efficient

manufacturing. Nevertheless, systemic challenges such as repairability limitations, reliance

on finite resources, and the promotion of short device lifespans highlight areas where further

improvements are necessary. As external pressures from consumers, regulators, and investors

continue to intensify, Apple’s future success will depend on its ability to embed circular

design principles more deeply across its product offerings.

Section 3: Driving Forces Towards Sustainability

By Sehabjeet Singh

Introduction

As the world faces urgent environmental challenges, sustainability has become a major

driving force behind innovation in every industry, including consumer electronics. Circular

design principles focused on reducing waste, maximizing resource use, and extending

product life cycles are no longer optional. Companies like Apple are under growing pressure

from regulations, customers, and investors to rethink their design and production models.

This section explores the key forces driving the consumer electronics industry and Apple Inc.

toward a more sustainable and circular future.

3.1 Industry-Level Driving Forces

3.1.1 Electronic Waste Crisis

The rapid growth of electronic waste (e-waste) has raised alarms worldwide. In 2019, the

world generated 53.6 million metric tons of e-waste, yet only 17.4% was formally recycled

(Forti et al., 2020). Governments, international organizations, and environmental groups are

demanding that companies rethink product design to minimize waste and maximize material

recovery. These pressures encourage the industry to adopt circular models, where reuse,

repair, and recycling are prioritized from the beginning.

New laws such as the European Union’s Waste Electrical and Electronic Equipment (WEEE)

Directive require companies to manage the recycling of their products, making it essential for

manufacturers to integrate recyclability into their designs (European Commission, 2022).

Failure to comply results in legal penalties and reputational damage.

3.1.2 Energy Efficiency Standards

Another strong driver is the global demand for energy-efficient products. Governments have

implemented programs like ENERGY STAR certification, rewarding manufacturers that

produce low-energy-consuming devices (U.S. Environmental Protection Agency, 2022).

Consumers increasingly prefer products that reduce electricity usage, lower energy bills, and

minimize environmental impact.

This trend forces smartphone makers to develop more efficient processors, displays, and

batteries. Companies that innovate in energy efficiency not only meet legal standards but also

gain market advantage with eco-conscious consumers.

3.1.3 Right to Repair and Modularity

The Right to Repair movement is gaining political and public momentum. Regulations in the

European Union and U.S. states like New York are pushing for greater consumer access to
repair services and spare parts (European Parliament, 2020). Laws now require manufacturers

to design products that are easier to open, fix, and upgrade.

This movement challenges traditional design philosophies centered on product disposability.

Circular design strategies—such as modular phones or easily replaceable components—are

being encouraged to meet these new demands.

3.2 Company-Level Driving Forces: Apple Inc.

3.2.1 Carbon Neutrality Goals

Apple has committed to making its entire business, including its supply chain and product life

cycle, carbon neutral by 2030 (Apple, 2021). This goal covers every stage—from material

sourcing to manufacturing, product use, and end-of-life recycling.

Achieving carbon neutrality pushes Apple to invest heavily in renewable energy, clean

manufacturing, and low-carbon materials. It also requires Apple to redesign its products to be

more energy efficient and recyclable, reinforcing its shift toward circular design.

3.2.2 Innovation in Materials and Recycling Technology

Apple is leading the industry in the use of recycled materials. For instance, recent iPhone

models use 100% recycled aluminum for the casing and recycled rare earth elements in

internal components (Apple, 2023). Apple’s “Daisy” robot can disassemble 23 different

iPhone models and recover valuable materials like cobalt, tungsten, and rare earth metals.
This technological innovation reduces dependence on virgin mining, lowers environmental

degradation, and ensures that valuable resources stay in the supply chain longer—key goals

of circular economy principles.

3.2.3 Circular Supply Chain and Product Take-Back Programs

Apple’s closed-loop supply chain vision focuses on making products without extracting

additional new materials. Programs like Apple Trade-In allow customers to return old

devices, which are either refurbished or recycled (Apple, 2023).

In addition, Apple’s reduction in packaging material and elimination of chargers and

earphones in new iPhone boxes significantly reduces resource use and shipping-related

carbon emissions.

3.2.4 Investor and Regulatory Pressure

Apple’s sustainability commitments are also influenced by the rise of ESG (Environmental,

Social, and Governance) investing. ESG-focused investors seek out companies with strong

environmental credentials, which means Apple must maintain and demonstrate progress

toward measurable sustainability goals (Morningstar, 2022).

Moreover, governments are imposing stricter sustainability reporting requirements. Apple’s

transparency in publishing annual Environmental Progress Reports helps meet these external

expectations.

However, despite Apple’s leadership in these areas, achieving full circularity at a

global scale remains difficult. Complex supply chains, high implementation costs, and

inconsistent regional infrastructure pose ongoing challenges to reaching complete

sustainability across all product lines.

3.3 Consumer and Societal Pressure

Consumers today, especially younger generations, prioritize sustainability when choosing

products. A study by First Insight (2020) found that 73% of Gen Z consumers were willing to

pay more for sustainable goods. This shift is influencing companies to incorporate

eco-friendly features not just into their products, but also into their branding and messaging.

Social media amplifies consumer voices, quickly spreading both praise and criticism.

Companies like Apple that lead on environmental issues can strengthen their brand loyalty,

while those lagging behind risk public backlash.

Circular design principles—such as durability, reparability, and recyclability—are becoming

expectations, not bonus features.

Conclusion

The shift toward sustainability and circular design in the consumer electronics industry is

driven by environmental concerns, evolving regulations, rising consumer expectations, and

strategic corporate goals. Apple’s leadership in material innovation, carbon neutrality, and

recycling initiatives shows how external pressures can become catalysts for industry

transformation.

However, the journey toward true circularity is complex and ongoing. As demand for

responsible technology grows, Apple’s continued investment in circular design

practices—and its ability to address real-world implementation challenges—will be critical

for maintaining its leadership in a competitive and environmentally conscious market.

Section 4: Restraining Forces Against Sustainability

By Iknoor Singh Marwa

Introduction

While many forces are pushing the consumer electronics industry towards sustainability,

there are also significant barriers slowing down this transition. Companies like Apple must

navigate technical, economic, and cultural challenges that make implementing circular design

difficult. This section explores the key restraining forces that limit the industry's ability—and

Apple's efforts—to fully embrace sustainable practices.

4.1 Industry-Level Restraining Forces

4.1.1 Technological Complexity

Modern consumer electronics are incredibly complex, with tightly integrated components

designed for performance, compactness, and aesthetics. This makes repairing, upgrading, or

recycling devices extremely challenging.

For example, smartphones often glue together batteries and screens to make devices thinner

and waterproof, but this complicates recycling and repair efforts (European Parliament,

2020). Thus, even though modular and repairable designs are encouraged by sustainability

goals, they often conflict with consumer expectations for sleek, high-performing products.

4.1.2 Economic Pressures and Planned Obsolescence

The consumer electronics industry thrives on regular upgrades and new product releases.

Many companies still follow practices that encourage planned obsolescence—designing

products with limited life spans to drive repeat purchases.

Circular designs that prioritize durability and repairability can slow down sales cycles,

reducing short-term profits. This creates a tension between environmental responsibility and

business models built around continuous consumption.

4.1.3 Lack of Recycling Infrastructure

While regulations are growing, recycling infrastructure for electronic waste remains limited

and uneven globally.

Many countries lack the facilities to properly collect, separate, and process complex e-waste

materials (Forti et al., 2020). Without strong recycling systems, even products designed for

recyclability may end up in landfills. This gap between design innovation and real-world

waste management limits the effectiveness of sustainability efforts.

Transition:

While these industry-level issues present broad obstacles, Apple also faces internal and

company-specific limitations that hinder its ability to implement sustainable practices at

scale.

4.2 Company-Level Restraining Forces: Apple Inc.

4.2.1 High Costs of Sustainable Innovation

Developing sustainable technologies—such as recycled materials, clean energy systems, and

efficient recycling robots like "Daisy"—requires large upfront investments (Apple, 2023).
While Apple can afford these costs due to its scale and profitability, smaller suppliers and

competitors often cannot, which slows down widespread adoption across the supply chain.

Moreover, these investments can create financial pressure in highly competitive global

markets where cost efficiency remains a top priority.

4.2.2 Trade-offs Between Performance and Sustainability

Apple is known for its emphasis on product performance, sleek design, and user experience.

Sometimes, circular design principles can conflict with these priorities. For example, making

a laptop or phone more modular and repairable can add bulk, reduce water resistance, or limit

design options. Thus, Apple must carefully balance sustainability goals with the performance

and design features that customers expect.

4.2.3 Supply Chain Challenges

Apple's supply chain is vast and complex, spanning dozens of countries and thousands of

suppliers.

Implementing strict sustainability standards across every supplier—especially regarding labor

practices, material sourcing, and energy use—is extremely challenging (Apple, 2021). Even

when Apple sets high internal goals, ensuring full compliance at every level remains a slow

and difficult process.

4.3 Consumer and Societal Challenges

4.3.1 Consumer Habits and Expectations

Although many consumers express interest in sustainability, actual buying behavior often

prioritizes price, performance, and design over environmental impact (First Insight, 2020).
Many users still upgrade devices frequently for the latest features rather than repairing or

extending the life of existing products. This consumer culture of fast consumption makes it

harder for circular business models—focused on longevity and reuse—to dominate the

market.

4.3.2 Lack of Awareness and Education

Many consumers are still unaware of the environmental impacts of their electronics.

Public knowledge about issues like resource depletion, mining impacts, and e-waste is

growing but remains relatively low. Without stronger education efforts from governments,

companies, and media, consumer pressure for sustainable products will continue to be limited

compared to its full potential.

Conclusion

The path toward sustainability in the consumer electronics industry faces significant

obstacles. Technological complexity, economic incentives for planned obsolescence, limited

recycling infrastructure, and consumer habits all act as restraining forces.

For Apple, overcoming challenges like balancing design with repairability, managing costly

innovation, and transforming a massive supply chain are ongoing struggles. Despite these

barriers, continued progress in circular design remains crucial—not only for the environment

but also for long-term business success. Recognizing and addressing these challenges will be

essential as companies like Apple work toward a truly sustainable future.

Section 5: Circular Design Approach and System Map

By Rudra Russo Majumder

5.1 Circular Design Narrative for iPhone

The iPhone's expansion within a circular economy framework necessitates a comprehensive

reevaluation of its entire lifecycle—encompassing raw material procurement, product design,

consumer usage, end-of-life disassembly, and material reintegration.​

The aim is to optimize resource efficiency, eradicate waste, and diminish environmental

impact while preserving the superior user experience for which Apple is renowned. In this

new system, the iPhone is no longer a linear product destined for disposal after a few years;

rather, it transforms into a perpetually regenerating asset.​

The following essential elements form the foundation of Apple’s circular design

methodology:

· 1. Raw Material Sourcing (Recycled & Ethical Mining)

· All primary materials (aluminum, cobalt, rare earth elements) are obtained from

recycled sources or ethically recognized mining activities (Ellen MacArthur Foundation,

2019).

· Reducing reliance on virgin mining substantially lowers carbon emissions and

environmental disruption (Apple, 2023).

· 2. Modular Product Design

· The iPhone features a reengineered modular architecture, allowing for the separation of

the battery, screen, camera, and core logic board.

· Modular design allows easy repair, upgrade, or disassembly (Bocken, Bakker, & Pauw,

2016).

· Design incorporates material passports integrated into components for efficient tracking

and future retrieval.

· 3. Manufacturing (Apple)

· Apple utilizes renewable energy across all manufacturing plants.

· Manufacturing procedures are optimized for efficient assembly and disassembly,

facilitating future material reclamation.

· Components are engineered to minimize material loss during recycling (Apple, 2023).

· 4. Distribution and Sales

· iPhones are delivered via low-emission logistics techniques.

· Leasing models and trade-in programs ensure devices consistently re-enter Apple’s

ecosystem (Geissdoerfer et al., 2017).

· 5. Customer Usage and Upgrades

· Customers maintain and periodically enhance their devices.

· AI-driven predictive diagnostics on iOS notify users of needed repairs, optimizing

device longevity.

· Consumers are incentivized to exchange obsolete devices rather than discard them

(Apple, 2021).

· 6. Trade-In and Refurbishment

· Devices submitted through trade-in programs undergo evaluation.

· Functional units are refurbished and resold.

· Non-repairable units are disassembled (Apple, 2021).

· 7. End-of-Life Disassembly

· Robots like Apple’s Daisy deconstruct electronics with precision.

· Components are separated with minimal contamination to preserve material purity

(Apple, 2021).

· 8. Recycling Facilities and Material Recovery

· Disassembled parts are sent to advanced recycling labs.

· Key elements like lithium, cobalt, aluminum, and gold are recovered at high efficiency.

· Plastics are either repurposed or biodegraded (Apple, 2022; World Economic Forum,

2019).

· 9. Reincorporation of Materials into New Products

· Reclaimed materials are reused in the Modular Product Design phase.

· Apple reintegrates these materials to manufacture new iPhones, establishing a

closed-loop production cycle (Stahel, 2016).

5.2 Circular Design System Map Explanation

The accompanying system map visualizes this full circular lifecycle:

Figure 1. Circular Lifecycle System Map for iPhone – This diagram illustrates material and

product flows from ethical sourcing and modular design to end-of-life disassembly and

material reintegration.

Node Descriptions:​

• Apple (Manufacturer): Central node responsible for modular production using renewable

energy.​

• Raw Materials: Inputs sourced from ethical mining and recycling streams.​

• Modular Product Design: Enables repairability, disassembly, and long-term reuse.​

• Distribution: Products shipped via low-emission logistics.​

• Consumer (Use & Upgrades): Users maintain, upgrade, and trade in devices.​

• Trade-In: Returned phones are either refurbished or disassembled.​

• End-of-Life Disassembly: Robotics aid in clean separation of components.​

• Recycling Lab: Advanced facilities recover valuable materials.​

• Material Recovery & Reintegration: Recovered materials re-enter the manufacturing loop.
5.3 Future State Vision for iPhone by 2030

Under Apple’s proposed circular model for the iPhone:​

• iPhones will be produced without exploiting new raw materials.​

• Apple will maintain global leadership and set a benchmark for industry-wide sustainability.​

• Device longevity will double, significantly reducing consumer electronic waste

(Geissdoerfer et al., 2017).​

• Material recovery rates will exceed 90% for critical elements (Apple, 2022).​

• Apple’s production will approach carbon neutrality across all supply chain phases (World

Economic Forum, 2019).​

• Consumer behavior will shift toward repair, trade-in, and modular upgrades as standard

practice (Stahel, 2016).

Final Report Conclusion and Recommendations

The findings of this report highlight the urgent need for a shift in how we approach product

design in the consumer electronics industry. Through detailed analysis, it is evident that

Apple has made meaningful strides in sustainability—particularly in areas like recycled

materials, robotics, and environmental reporting. However, achieving true circularity will

require deeper structural changes across design, supply chains, and consumer engagement.

Transforming the iPhone into a circular product is more than a technical challenge—it’s a

strategic opportunity to lead by example. By embracing repairability, promoting ethical

sourcing, enhancing trade-in and refurbishment systems, and encouraging long-term use over

frequent upgrades, Apple can set a new global standard for sustainable technology. This
transition is not only necessary for the environment but also for the long-term resilience and

responsibility of the brand.

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