#but if you pay fairer wages in a system that has slow or no growth

[thatscarletflycatcher]

*looks at the notes on this post*

You were right, OP, people were not ready for this conversation.

Edit: reasons why I hardly ever talk economics/politics/ethics on this website.

I don’t think you’re ready to have an adult conversation about politics until you’re able to admit that there are things you love and enjoy that would not and should not exist in a just world. $8 billion dollar budget movies every other month don’t exist in a just world. New 900 GB AAA video games every year don’t exist in a just world. Next day delivery doesn’t exist in a just world. 80 different soda brands don’t exist in a just world. 

All of those things come from exploitation on some level, and if you wouldn’t trade those for a world where everyone can eat and have a home no matter who they are or what they do, I don’t know what to tell you. 

Edit: I made this comment a few days ago, but since it’s been buried in the 40k notes this post got since then, I’ll repeat it here. I agree that delivery of  medications and other vital supplies are essential! The “Next day delivery” I’m talking about is shit like Amazon that relies on incredibly awful national supply chains. If I had known this post was going to get this much attention, I would have been more explicit. 

[mookymilksims]

ULTIMATE Realistic Money overhaul | Roleplay Guide | The sims 3

TYSM for 600+ subscribers on Youtube!

Introduction:

Hello everyone and welcome back to my channel! In today's video I'm going to show you how to overhaul the sims 3 economy, how to have complete control over your billing system, and how to have a more realistic money exchange mechanic! We will also be exploring how to go about a much more realistic renting/mortgage system. This guide has been a long time coming, it's very simple and beginner friendly, but to find all the mods it would take to set this up would be a pain for anyone trying to revamp their sims economy. I've playtested this mod setup for a couple of years, and I can never go back to the original EA economy and billing system. All of these mods work with each other in a synergy circle, they compliment, play off of, and enhance one another. All links will be included in my tumblr guide, and the comment leading to my tumblr guide will be pinned in the comments below. I recommend following alongside the guide and the video, especially if you do not speak english, so you can translate the guide to your native language, while still being able to follow along the video! If I am talking too slowly for you I highly recommend everyone to increase the video speed to x2, and slow it down at certain parts you need extra focus on. Don't worry, I won't be offended at all by this, I do it myself for tutorial videos.

First - Overhaul the sims economy.

No bills

First we need to get rid of the EA billing system. This is because we are going to add new mods that introduce much more realistic billing and rental mechanics. This also eliminates some core issues with the EA billing system. Such as having a large piece of land, but a tiny house, and your bills being upwards of 40k every couple of days. Utilities not being calculated properly. And being billed more because of your more expensive items on your lot. Since we are also overhauling the sims economy, the original EA calculations wouldn't make any sense anymore.

EVM Career Wages

This mod adds a much more realistic financial wage system. Since we have now removed EA bills, our sims wages need to be able to reflect the more realistic economy we are going for. Gone are the days of every Sim earning a fortune with a mere $45 per hour entry-level job. This mod adjusts the wages across all career levels to align with real-world standards, creating a more immersive gameplay experience.

With EVM Career Wages, climbing the career ladder feels genuinely rewarding as higher pay accompanies each promotion. This encourages players to strive for advancement and invest in their Sims' professional growth. Additionally, when paired with the UC mod, promotions become more challenging to attain, placing greater emphasis on the player's decisions and strategic gameplay.

Camo fairer priced groceries and books

Camo tweaked goods

Revamped Economy Essentials:

With Camo's Fairer Priced Groceries and Books alongside Camo's Tweaked Goods, the Sims 3 economy undergoes a significant transformation. These combined mods slash the prices of commonly purchased items, bringing a newfound sense of realism to the game. No longer will a single egg set you back $11; now, it's a mere $2, making grocery shopping a more authentic experience. The same principle applies to book prices, ensuring that essential items are now more affordable for Sims across the board.

This overhaul becomes even more impactful when paired with the Savvier Seller mod, which ensures that prices are not only reasonable for your household but also for the entire neighborhood. This adds a more balanced and lifelike economy, where every Sim can afford the necessities without breaking the bank.

taxi charge

simsmathew subway charger

Realistic Transportation Fees:

Combining the Taxi Charge and Simsmathew Subway Charger mods introduces a new level of realism to transportation in The Sims 3. Each time your Sims opt for a taxi ride or subway journey, they'll incur a small fee. This adds a layer of financial consideration, prompting players to rethink their Sims' commuting habits.

Immersive roleplaying opportunities emerge as players strategize the best way to navigate their Sims from point A to point B. Whether it's opting for eco-friendly methods like walking or biking, or planning a journey that involves a mix of walking and subway rides, every choice impacts your Sims' budget and experience.

This deeper level of engagement allows players to connect with their Sims on a more personal level, experiencing the journey alongside them and enjoying the rich scenery and interactions along the way. Now you'll be pushed to experience y

Ani tax collector

New Billing System:

The tax collector mod essentially allows you to create your own billing and taxing system. This mod introduces a scripted computer interface with customizable settings, allowing players to seamlessly implement various taxes and fees. From water and electricity bills to health insurance premiums and car payments, Sims will autonomously be directed to settle these financial obligations once the tax settings are activated.

For an added layer of realism and roleplay, consider situating these computers at opened rabbithole like the city hall. This not only streamlines your Sim's outing tasks but also enriches the gameplay experience, allowing players to engage in more dynamic and immersive storytelling.

I'm going to go in game and show you how I achieve this effect for a very quick and easy tutorial.

So because we turned off the EA billing system, we need to create our own bills, to still simulate having to lose money through our gameplay. You can place these new tax computers on an opened city hall rh lot (if you don't care for aesthetic then I recommend placing these in the basement), or another community lot altogether. Please note that if you place these computers on a cityhall RH lot, and you enable UC mod on that lot, you should lock the doors leading to the tax computers. This is because with SonyaJu's UC version, the sims working on the lot will be pushed to use the computers which will result in all of your sims being sent to pay their taxes throughout the day. You can lock community doors using Nraas Go Here, or nona lock community doors mod as an alternative.

Now that we have set up our computers, you click the settings and rename the computer. Rename this to any bill you want to pay. Here I am setting up a, Water, Electric, Phone bill, Car note, and Car insurance computer. Now I can click on tax collector > settings > edit multiplier.

Water = 0.8

Electric = 0.4

Phone - 0.2

Car note = 0.5

Car insurance = 0.6

these multipliers automatically calculate what you currently have available in your sims household funds, and deducts the "tax" based off of the multiplier. This adds a more logical calculations to what each individual household could actually afford, without being too overbearing on your funds loss. This make a much more realistic and immersive billing system actually possible in the game, that fixes a lot of the issues with EA billing system, and matches the new sims economy we have created with this combination of mods.

Which leads me to my next part. I pay all of these bills monthly in my game. This adds a much more immersive and realistic experience, and I even have to keep an eye on my sims budget throughout the month, like in real life. Sometimes, I may have to sell things or find any way to make extra money to pay my new bills, or pick which bill I have to pay if I can't afford them all. I give myself consequences if I can't afford certain things. When I show you how to use the new renting system, I'll even roleplay getting evicted as a consequence if I can't afford my rent.

Enhancement Miscellaneous Mods:

The collection of these next mods serve to either rectify the Sims economy hiccups or introduce a fresh layer of roleplay, prompting players to reassess their spending habits and EP career choices.

Some of these mods make purchasing certain items actually reusable like bubble bath products and painting supplies. While others make certain careers have higher payouts which makes the wages for that career make more sense and become more satisfying so you'd actually want to work at it. This also enhances rags-to-riches playthroughs, rendering them more intricate and gratifying.

For instance, with these mods combined, the necessity for pets to rely on manually refilled food bowls instead of random props elevates pet care to a level akin to caring for a toddler. This makes having a pet a lot more impactful in your household, as well as financially.

In general, all of these mods balance back out certain EA default settings, which slowly begins to push together a more and more realistic economy.

I will place the mods you want to add on the screen, and all the links will be provided in the tumblr guide.

speedo higher concert payouts

picnicbasketpricechange

bubble bath runs out

pet bowl needs food

Nona always more gigs 3 times money

wildflowernerf per value

Double money highchancs faster mooch skill

painting needs supplies

painting costs money

government benefits and service

This mod is tailored to amplify the immersive experience of playing as lower-income households in The Sims 3. This mod introduces a plethora of meticulously scripted game mechanics designed to add depth and realism to the struggles and triumphs of impoverished Sims.

One standout feature is the ability to establish child support payments, calculated with precision based on the target parent's income. This introduces a compelling dynamic for players who wish to roleplay scenarios involving relationships with wealthier partners, where child support checks become a lifeline for sustaining the family's livelihood, as an example.

Furthermore, Sims can now apply for various forms of assistance such as health insurance and Electronic Benefit Transfer (EBT), opening up new avenues for navigating the challenges of financial hardship within the game. These additions inject a newfound sense of complexity and realism into rags-to-riches playthroughs, providing players with additional gameplay mechanics to consider and explore. You'll find yourself embarking on a journey of resilience and resourcefulness as you guide your Sims through the highs and lows of economic adversity in the game.

If you are following my guide step by step consider applying these tweaks to the xml's.

As an added note, I no longer add a health insurance tax collector computer, as with MonocoDoll's new GA mod poorer sims can get affordable health care, and sims who do not qualify for this have a good job where I imagine the job offers it's own health insurance instead. So because of this new mod addition, this eliminates the need to set up health insurance payments for my households.

Second - Career's addon's

Gamefreak's check for work

job overhaul

lemonaise 50 jobs offer

These mods revolutionizes the Sims' job acquisition process, enhancing realism and depth. This also enhances the effectiveness of attending university. Without a degree, Sims may struggle to secure certain jobs and will always start at entry level.

The mod introduces a comprehensive interview and application process, typically lasting about an hour in-game, during which Sims disappear into the rabbit hole. Sims can attend resume building and interview classes to improve their chances of employment, mimicking real-life strategies. Uploading a resume, particularly a University Life degree, significantly boosts job prospects.

Maintaining cleanliness, hunger, and a positive mood is crucial as neglecting these factors decreases the likelihood of job offers. The "check for work" option allows Sims to scout for job openings beyond the replaced job hunting UI.

Lemonaise's 50 Jobs Offer expands job opportunities, reflecting the realistic scenario where obtaining desired employment may require starting elsewhere. Just as in real life, a degree does not guarantee the desired job immediately, necessitating patience and flexibility in career pursuits.

This mod combination adds layers of realism and challenges, making Sims' lives more expansive and rewarding. Achieving dream jobs becomes a testament to perseverance and hard work, enhancing the sense of accomplishment for players.

Ani's job board

Ani's Job Board introduces a WA-inspired board object that fills the gap left by missing opportunities in UC mod. With UC's scripted behaviors for work, some autonomous opportunities were removed. However, this mod remedies the situation by providing Sims with a platform to browse and undertake additional work and school opportunities. Now, players have the autonomy to choose whether to pursue these extra projects, adding depth and flexibility to their Sims' lives.

Nraas Careers

Nraas Careers is a mod that expands the possibilities for Sims by enabling custom careers and establishing a homeworld university. While the details of setting up a homeworld university can be explored in another video, this guide focuses on how this mod integrates custom career opportunities with UC. With Nraas Careers, players can seamlessly bind custom careers to EA careers, unlocking a wealth of new professional paths for their Sims within the game. What this means in basic terms, is that UC works by adding a number of objects sims use on a lot, to increase their work/school performance. If you are playing as a custom career, UC won't know which objects can increase that careers performance if the career hasn't been bonded to an EA career.

Sonja's UC

Sonja's UC is an enhanced iteration of Zerbu's UC mod, designed to optimize the original mod's scripting for improved performance and stability. While still a work in progress and subject to occasional issues, this update enhances the main features of the mod, resulting in faster and smoother gameplay. Sims now spend less time deliberating their actions, experience reduced lag before heading to work, and are not as rigidly constrained to complete tasks. Instead, they are encouraged to take breaks and socialize, mirroring real workplace dynamics.

Although ongoing testing is underway, I recommend trying out this version as it also introduces additional modded script objects to careers. Setting up the mod in-game is straightforward and can be easily demonstrated.

zoeoe flower arranging

knitting

pheobejaysims take sims to court

pheobejaysims betting

On the Screen, will be a selection of miscellaneous mods that enrich your gameplay experience by introducing custom playable careers and intricately scripted mechanics.

With these mods, you can immerse yourself in diverse professions such as modeling, flower arranging, or managing a home-based Etsy-style knitting business. Additionally, you have the opportunity to delve into the legal world as an attorney or explore the unique avenue of earning money through litigation against other Sims and establishments.

For those inclined towards risk and excitement, Phoebejaysims' Betting mod allows for a full-time gambling lifestyle, leveraging specific store objects to enhance the thrill of the game.

These mods significantly expand the scope of gameplay possibilities, offering players a plethora of new career paths and immersive money mechanics to explore and enjoy.

Third - Biggest gameplay changes and fixes

Bank mod

Otherwise known as the non-core global banking mod, this mod is a game-changer in how you manage money in The Sims. This mod allows you to establish a bank account for your Sims, complete with essential banking functionalities like deposits, withdrawals, and money transfers.

I'll guide you through setting up a new renting and mortgage system in-game, offering alternative perspectives on cash handling, including household funds versus bank account funds. Additionally, I'll show you how to separate all Sims' incomes and present an edited version where the bank account resembles a debit card in your Sims' inventory.

Let's dive into these transformative features that will revolutionize your Sims' financial management experience.

How to make a bank account.

Simply click on a computer, whether on your home lot or community lot. Navigate to online banking interaction > Open Account. $25 will be deducated automatically, and you will have a new bank account in your sims inventory.

How to create a landlord.

Simply select any sim you would like to be your new landlord. Using Nraas MC > Make Active, you can then open a bank account for the selected sim you've chosen to be your landlord.

How to pay rent.

Once the bank account has been sucessfully opened you can go back to your original active household. Then select the bank account in your sims inventory > Transfers, if you are friends with the landlord then select "Sims you know", if you are not friends with them then select "in your neighborhood". Navigate the list to find your new landlord, then send them your rent or mortgage for the month.

How to separate income.

Using this banking system I separate my sims money by having their bank account as their debit card and their household funds as their cash on hand. I typically, split up the funds reasonably between everyone's bank account in the household. This leaves $0 in the household funds. Once a sim is done with their work day, the exact amount of money they made for the day will go straight into your household funds. From there, I deposit that money into their bank account. It only takes a couple of seconds and is very simple.

As an added note, when sending the sims out and about in the world, I'll need the money from their account in the household funds so that they are able to spend money. So I quickly withdraw a random amount of money I think they will need for the outing, allowing them to actually buy what they want from the community lots. For extra immersion, consider adding a deco ATM machine, to simulate where your sims would be withdrawing their money from.

Just as promised, I told you how I would roleplay an eviction process, using this new renting system. If my sims cannot pay the rent, and they ask their landlord to an outing, if the landlord does not have a good time then I only get 1 sim month to leave the home or pay rent for both months. If the landlord does have a good time, then I imagine they allowed me to skip my rent payment for that month. If I still don't have rent money by the end of the month, I move my sim to a 10x10 empty lot somewhere in the world, and have my sim live out of a tent, or shady motel (set as a base camp), until I can afford to move into another home. If I choose to live in a motel, while the base camps are free to stay in, I create a custom role titled "Motel front desk", open that sim a bank account, and then pay them $100 weekly, while this is still a payment it is much cheaper than my sims rent that we couldn't afford, and still allows me to roleplay money being lost. If I don't have to be completely homeless then I won't, if I have $0, then I will.

nraas consigner

nraas register

Nraas Consigner and Nraas Register are essential mods that address the shortcomings of the register systems in the base game. Consigner enhances gameplay by introducing the option to make all items consignable, simulating a realistic thrift store or pawn shop experience. Meanwhile, Register adds extra checks to ensure Sims are correctly assigned, along with providing additional population controls beyond the capabilities of Story Progression. Whether or not you utilize other mods, these fixes are indispensable for enhancing your gameplay experience.

Exciting Update Alert!

@olomaya on Tumblr is currently developing an innovative new renting system for the game, which promises to offer Simmers a wide array of options for money roleplaying. This upcoming system represents a significant evolution in gameplay mechanics, potentially replacing older systems and providing fresh opportunities for immersive financial management.

Stay tuned for a comprehensive guide on this mod, which will delve into its functionalities, compatibility considerations, and potential replacements for older mechanics. Until this mod is developed, playtested, and released, I'll be using this system that I have set up and just showed you guys in this video!

So this concludes everything that I wanted to show you guys! You now know how to set up a more realistic billing system. Renting/mortgage system. You've learned how to add and roleplay more complex money gaming mechanics. You've overhauled your wage system, as well as your cost of living economy in the world. And none of these are too overbearing, with just a little bit of set up, you'll have an ultimate realistic economy and money system in your sims 3 from now on! Thank you all for joining me, thank you for 600 subscribers, and thank you for your love and support! I'll see you all in the next video!

[sheminecrafts]

Can Fairphone 3 scale ethical consumer electronics?

Fairphone, the Dutch social enterprise that’s on a mission to rethink the waste and exploitation that underpins the business of consumer electronics, has unboxed its third smartphone.

The handset, which is sold with the promise of longevity rather than cutting edge obsolescence, goes on pre-sale from today in Europe via Fairphone’s website with a suggested retail price of €450 (depending on local taxes and levies). It will ship to buyers on September 3.

Like its predecessor, the design is modular to allow the user to swap out damaged parts for replacement modules that Fairphone also sells.

Out of the box the phone comes with Android 9 preloaded. A post-launch update will make it easy for buyers to wipe Google services off their slate and install the Android Open Source Project instead.

Commenting in a statement, CEO Eva Gouwens said: “We developed the Fairphone 3 to be a real sustainable alternative on the market, which is a big step towards lasting change. By establishing a market for ethical products, we want to motivate the entire industry to act more responsibly since we cannot achieve this change alone.”

“We envision an economy where consideration for people and the planet is a natural part of doing business and according to this vision, we have created scalable ways to improve our supply chain and product,” she added.

Fairphone 3 running Android 9 out of the box

Mining an ethical niche

Since 2013, the hardware startup has focused on selling smartphones attached to a pledge of fairer working conditions for the people who assemble them, and greater transparency around the sourcing of minerals and materials needed to make them — as well as designing for longevity and repairability.

More than 80% of the volume of the Fairphone 3 is recycled, according to founder (and former CEO) Bas van Abel. He also touts its own research that suggests a Fairphone 3 owner who’s able to keep and maintain the device can save 30% of CO2 emissions or more over the product’s lifetime.

In seeking to achieve its flagship ‘fair phone’ pledge the team behind Fairphone has had to go beyond the surface hardware — and innovate on developing supply chains that can live up to an ethical agenda.

Fairphone 3’s PR flags “responsibly sourced and conflict-free tin and tungsten, recycled copper and plastics”, as well as fair trade gold which it sourced for the handset (and is working to integrate into its supply chain). It also says it’s in the process of setting up an initiative for “better sourcing of cobalt”, aka the key mineral for energy transition.

Malachite, copper and cobalt. Image credit: Fairphone

On the labor and human rights front, the Fairphone 3 is assembled by Taiwanese manufacturing partner Arima — which Fairphone says it has collaborated with to “improve employee satisfaction by improving worker representation, health and safety and by paying a bonus to workers with the aim to bridge the gap between minimum and living wages in the factory”.

In practice van Abel says this means Fairphone pays the assembly workers employed by Arima a bonus based on increased performance around its social goals. Rather than, per more usual industry practice, punishing the manufacturing partner if it fails to hit stringent delivery targets — which then encourages a punishing spiral of forced overtime that erodes workers rights and welfare.

It also has social incentives programs in three other factories that put together components for the device, such as its speakers.

Despite what are clearly laudable and lofty goals, selling fairer and more ethical smartphones remains a niche business for now, with Fairphone’s total shipments to date representing less than 0.1% of the Western European smartphone market. It is also still a European-only business. But it’s a niche that van Abel says is “growing at high speed”.

“I do believe it’s very feasible for Fairphone to [ship 200,000 smartphones per year] in the next couple of years,” he says, adding: “We can address a small part of the conscious consuming market” — pointing to Gouwens’ background at a Dutch confectionary company, Tony’s Chocolonely, which was set up in 2005 to campaign for fair trade and slave-free chocolate, and now has the biggest marketshare on chocolate in Holland.

Phones are of course far more complex to make than bars of chocolate. But in recent years a maturing smartphone market has seen a slow down in the pace of technological innovation coupled with rising commoditization that’s made differentiation a major challenge for Android OEMs especially.

So if there’s a point in time when a fair trade smartphone might stand a chance against the Samsungs, Huaweis, Xiaomis, Oppos, LGs and so on then the current moment has a fair bit to recommend it.

At the same time, concern about the environmental cost of business models that depend upon continuous resource use and generate mountains of e-waste is also growing — thanks to greater visibility and awareness of the damage caused at both ends of the pipe (including as countries like China put hard limits on the types of foreign waste they’ll accept).

“I believe that we are more and more ready for [sustainability and fair trade] in consumer electronics and I do see that the conversation in consumer electronics is definitely changing — it’s much more mature on sustainability,” says van Abel. “More and more companies are looking into it, and it’s also more demanding from the consumer perspective. You see that that’s changing as well. So it will happen. It’s just that it’s not happening fast enough.”

“We’ve been not so successful in disconnecting the [consumer electronics] business models from the use of resources yet but that is a legacy from an economic system that was set up centuries ago,” he adds. “Where growth is connected to the use of resources — and that has to do with sustainability and change and a changing mindset.”

The wider conviction, for Fairphone as a social enterprise, is to work to generate momentum that pushes the consumer electronics industry towards a circular future — where fairer conditions for workers and a reduction in waste and resource use; a focus on product longevity via repairable design and component reuse; and end of life recycling are no longer exceptional but what every player strives for.

The project is indeed a massive one. And Fairphone remains very much a work in progress — an ambitious attempt at reforming all the tarnished links in the smartphone supply chain. So yes, it’s by no means perfect.

The industry that it has to interact with still contains plenty of murky corners which a tiny company has only very limited power to sway. Even as Fairphone has punched above its weight by using campaigning roots to build consumer awareness and industry buy in that’s enabled it to enact small on-the-ground changes which have the potential to scale into something bigger.

Its investors include Bethnal Green Ventures, Pymwymic, Doen Participaties, Quadia, Dutch Good Growth Fund and ABN Amro Fund. More than $40M has gone into the business since Fairphone was founded — in seed, VC and debt financing.

“The problem with the industry is that the deeper you go into the supply chain — like the third, fourth tier — the worse it gets,” says van Abel. “So the assembly factories where you have a direct relationship are basically the ones that are doing pretty well, also because they have all these rules and things put upon them by big manufacturers. Companies are most vulnerable on the ODMs.

“So the further you go into the supply chain where they’re really making the plastics and the small metals and that kind of stuff the worse it gets. So we really want to also make sure that that is being surfaced and that we put some attention on it… Are we able to change that deep into the supply chain? It’s really difficult to get that far as a small player but we’re trying.”

“On the supply chain we’ve been going along investing into programs all along the way,” he goes on, giving the example of a child-labor free mining program it’s set up in Uganda to source fair trade gold.

“We’re working really hard with lots of partners on the ground. It’s getting off the ground now but the gold that we get from there is not connected to the supply chain of the [Fair]phone yet — so that will be an innovation that will come along the way, coming in 2020.

“What we do now is we’ve taken all the supply chains that we had for Fairphone 2 and were able to get that into Fairphone 3. So at least we have everything that we covered with Fairphone 2 but in a way that is also more scalable. Previously we had the gold through our own supply chain going into the factories. Right now we have it set up in such a way that other companies can use that same gold and the factory can scale up with that gold as well. So it’s a higher amount, it’s more scalable but we’re also setting up new initiatives.”

“Another one is cobalt which we’re investing in a lot — which is used for batteries,” he adds. “If we get that initiative up and running it’s also very interesting for the car industry to actually use that same supply chain. Because one of the things that a lot of the industry is focusing on is recycling. But we all know that there’s not enough to recycle to actually feed the supply chain with the amount of minerals we need to make our products. So we still need mining. And that’s one of the things that the industry has not been very open about.”

Virgin resources being necessary to manufacture shiny gadgets and electronics-packed machines is the industry’s dirty not-so-little secret. This means mines where minerals are dug out of the earth in order to be refined or smelted for use in the modules and components packed inside devices.

Even consumer tech giants that make claims for the labor and welfare standards of their third party assembly factory workers aren’t typically making promises that extend all the way back to the mines where the minerals essential to their devices are dug out and processed. Fairphone is at least trying to dig into the dirtiest stuff.

Conflict-free tungsten mine in Rwanda now integrated into Fairphone’s supply chain. Image credit: Fairphone

“We have an approach where we look at closed pipe supply chains for certain materials from the mines all the way to the component. And we look at the factories that are involved along the line per component because we can’t do all the factories — so we can at least say along that whole supply chain we’ve looked at the factories working it in,” says van Abel.

“If you look at mining there’s nothing beautiful about mining… Mining in itself is bad for the environment, there’s a lot of harsh working conditions, it’s in third world countries many of the times, so it’s not a focus area of a lot of these companies because it’s… a far away story. So many of these manufacturers and phone companies focus on recycling.

“In itself recycling is not bad it’s just that we still need all these virgin materials. Also recycling is kind of a last resort as I see it — reusing components would be a better thing. And even the best thing would be using the phone as long as possible.”

Repairable for half a decade+

Like its predecessor, the latest Fairphone’s flagship feature — aside from fairer and more ethical assembly — is that it’s designed to be repairable. A fact that’s front and center when you open the box and find a tiny screwdriver nestled alongside what otherwise looks a fairly standard (if slightly chunky) Android smartphone.

There’s no charger, USB cable or headphones in the box — intentional omissions to reduce unnecessary e-waste. The novel presence of a tiny metal and plastic screwdriver seems a fair trade for the usual accessories which Fairphone has calculated most phone buyers will already own. (If not, it can sell you a charger.)

Its big promise with this, its third generation handset, is that it will be supported for the next five to seven years.

van Abel tells TechCrunch he’s confident it can deliver on that “bold” pledge — having learnt some hard lessons over the past five+ years of pushing against ingrained industry habits baked into clockwork component upgrade cycles.

It wasn’t always like this. Some buyers of the first-gen Fairphone were disappointed and even angry when it announced it was ending support for that device in 2017 — meaning an early adopter would only have had between two and 3.5 years’ support for a smartphone that was sold as ‘repairable by design’.

The problem Fairphone found itself first crashing into, and next seeking to tackle head on, is that the consumer electronics industry as a whole is not geared up for sustainability and repairability but rather locked to regular (wasteful) upgrade cycles which in turn drive regular ~two-year component refresh cycles.

This tick-tock onward march of upgrades makes supporting older hardware a challenge. In seeking to go against the grain Fairphone has literally had to stockpile enough components to ensure it can offer years of spare part runway to support its devices.

In parallel, industry software has also needed to evolve so chipsets can be supported for longer — and van Abel says “a lot of software is actually changing. You can upgrade more and more easily to new software” — so it’s finally in a position to be confident that the latest handset can last.

“Our company has gotten much more mature,” he also says. “We are better equipped to deal with the scaling, the financial position has increased and has changed up to a point which is much more solid — so the whole support system, the ecosystem, around the phone has improved a lot.”

The Fairphone 3 is its second handset design to incorporate repairable modules that are designed to be accessible to the user. It comes in a translucent shell that also acts as a protective bumper and is stamped proudly down the side with the words “designed to open”.

Crack into it and you’ll find six modules that can be swapped out with a little bit of elbow grease and a Phillips #00 screwdriver — including the display, speaker and camera, as well as the battery (harking back to days when replaceable batteries were a smartphone norm).

Fairphone 3 — modularity refined

The aim of this type of modularity is not for customization or upgrades but for sustainability by increasing longevity by making it easy and cheaper to replace a damaged or defunct component vs junking the whole phone or having to take it to a specialist shop for expensive repair.

To be clear Fairphone is not offering upgradable hardware modules to boost phone performance over time but like for like replacements. It wants each Fairphone user to keep the same handset for longer — even if it gets dropped and the screen cracked, or used so much the battery loses its capacity to hold a charge.

“One of the biggest changes we’ve seen in the phone industry is that there’s small incremental innovation — which is in our benefit. So I think the time is right now,” says van Abel. “We are able to support phones longer. It has to do with the hardware, it also has to do with the software. The software you see that many of the software platforms… offer a better integration with the chipset. So also for future upgrades.

“You will see the software will run for longer time also on these chipsets — which basically are at a point where you will not run WhatsApp faster on a newer chipset. For some [other] stuff, especially on 3D gaming and the really high end computing stuff, it makes sense to go to the new processors but most of the stuff you will be able to do on the average processor on the phone. So it paves the way to keep phones in the hands of the consumers for a longer time, which makes sense. Because it’s cheaper for consumers… and it also is more sustainable.”

With the Fairphone 3 he says the company sought to dial down the “radical” modularity of its earlier crack at the concept — so the result is less of a ‘party trick’ smartphone design, as the Fairphone 2 was (he dubs it a “show off” phone) — and more, well, dull but worthy; modularity as a utility that’s there to enable (occasional) repairs.

“You don’t need the phone to be so super smooth in taking apart to be able to repair it,” he says. “Fairphone 2 goes beyond the idea of repairability. It’s more a show off phone in that sense. And that also comes with risks.”

Fairphone 2 — its earlier, flashier crack at modularity

Refining its approach to modularity also means Fairphone has been able to reduce the cost of the handset. Consumers will see that in a cheaper price-tag (€75 less than the prior model) — which puts it in reach of a bigger group of potential buyers.

The design is a cost (and risk) saver for Fairphone too in that it’s easier to manufacturer.  And cost and sales volume are important when you’re trying to demonstrate that making sustainable hardware can still turn a profile. (Not that Fairphone is there yet — but finding a path to profitability is a core part of the mission.)

For users the only slight downsize of the reconfigured modular design — which has a full 13 screws just holding the display module in place — is that getting to the guts involves more fiddling than it used to. Which again seems a fair trade given how rarely you should need to get into it.

“Fairphone 3 there’s less risk involved in manufacturing, the design is more sturdy so in that sense it’s also a phone we can scale with as a company — so the whole ecosystem around it; the quality control,” says van Abel. “We have a big team now in China which we didn’t have with Fairphone 2. So we are much more confident with this phone we can offer a very high qualitative product.”

If the aim of your social enterprise is to reduce e-waste and overall environmental impact by selling phones that are designed to last longer than rival devices there is something of a natural tension about releasing any new handset model at all.

When I put this to van Abel he agrees but points to the push and pull around the product, given the unavoidable need for Fairphone “to stay relevant” by appealing to smartphone buyers, and given the industry “not working int he way that we would like it to work”, as he puts it — i.e not being geared for longevity.

Fairphone definitely needs to be able to sell phones if it’s to make a positive dent in consumer electronics practices and processes. Which means enticing buyers is important.

And on that front its last model wasn’t an amazing success — saddled with uninspiring hardware at a fair trade premium price. (A pretty biting 2016 review by Wired called it “ethical but ugly”, complaining also that it had a slow camera and dated hardware.) Closing that ‘compromise gap’ is thus a key aim with Fairphone 3.

van Abel enthusiastically talks up the performance specs, noting particularly that they’ve put a lot of work into improving battery performance (the removable cell is 3000mAh, and includes fast charging) and on software engineering to integrate the camera — which he claims, as far as performance and photo quality goes, is “on par” with high end smartphones “that cost twice as much”.

At a glance the 5.7 inch full-HD screen also looks clear and crisp. Plus there’s a fingerprint reader on board, as well as NFC and 4G. Inside is a Qualcomm Snapdragon 632 engine, 4GB of RAM and a generous 64GB of storage (further expandable via an SD card slot). Dual SIM slots are another welcome touch.

The handset comes preloaded with a vanilla implementation of Android 9 (Pie). But as noted above buyers will be able to switch for a non-Google alternative — via an updater that will let them wipe and install the Android Open Source Project flavor of the OS. (The updater will come post-launch, according to van Abel, who notes that around 5% of Fairphone users opt to go full open source.)

Ethics aside, one straight up hardware boast the Fairphone 3’s got going for it is that it has a 3.5mm headphone jack. Which is something you won’t find on Apple’s latest iPhones. Nor on Samsung’s newest flagship. The march of tech progress has erased the accessory-friendly hole from premium devices.

So it’s a nice additional perk for Fairphone 3 buyers who’ve invested in wired headphones — meaning they can keep using other kit for longer too.

From fair trade chocolate to smartphones as a service

The smartphone industry has marched at a pretty steady clip since Fairphone 2 was released at the back end of 2015, with rivals updating their own much more expansive product portfolios at least annually. So an upgrade more than three years after the last Fairphone doesn’t seem overly wasteful or indulgent.

And while Fairphone has never pretended it’s going to be able to compete, like for like, with top tier smartphones on pure hardware specs and features it does need to be able to offer a phone that’s compelling enough to convince buyers to switch.

Good enough smartphone hardware with a guarantee of repairability and which is combined what it calls “fair specs” — i.e. a minimum wage for a workers in its supply chain plus a bonus that aims to close the gap with that and a living wage — is its sales pitch for Fairphone 3.

Who Fairphone buyers are is also expanding, according to van Abel. So while, two years ago, he talked of the typical user being a ‘Gen X German with a master’s degree’, now the target is any conscientious consumer.

Selling at least 100,000 handsets per year is the goal. To date it’s only sold ~175,000 Fairphones in total — through pre-sales and organic growth — but it reckons the new device will enable it to scale beyond that core fan-base to address a wider community of ethical consumers.

It’s being helped to that end by expanded carrier partnerships — such as one with Orange in France which will see the mobile operator range the handset in 600 stores.

Scaling sales is another necessary part of the social mission, says van Abel — as Fairphone needs to show its social impact investors that it’s growing demand and building a market for ethical alternatives.

When — or even whether — there will be a Fairphone 4 is a question he isn’t keen to engage with. Clearly the hope is Fairphone 3 packs enough smartphone punch to go the distance. Though he hints it might look to offer additional smartphones in order to enter the US, a major market it’s so far not addressed at all.

While Fairphone has had a singular device focus to date, van Abel says it’s thinking about applying its hard won learnings around electronics supply chains to other types of consumer devices — suggesting ‘Fair’ could end up as a brand prefix atop an assortment of consumer gadgets.

“I think Fairphone has developed itself — even though it’s called Fairphone — into a brand that I’m pretty sure can go into a full blown, sustainable, consumer electronics brand. Because there are none,” he tells TechCrunch. “There are not so many brands in the industry that can differentiate on what they stand for. Apple does pretty well on design. But for the rest I don’t know a lot of premium brands that can differentiate on something that they’re really good at. And we’re good at creating social innovation and sustainability. And a lot of the supply chains that we’re using already can be used for other products as well.”

More broadly, the business is evolving to sell sustainably-minded process change back to the electronics industry itself — which of course needs to reform wholesale in order to enact the kind of root and branch change needed to support a fully circular economy.

In practice this means the ethical supply chains it establishes are intended to be open for others in the industry to use too. So Fairphone’s business of making ‘fairer’ handsets also functions as a showcase and case study to encourage wider industry reform — including via some direct partnerships that allow its own tiny orders for key minerals to be fulfilled by it piggybacking and scaling the order with the help of larger buyers.

Of course everything in electronics is connected. So real change isn’t going to happen overnight. Which makes being committed to stick at it and drive consumer awareness essential. It’s a long game. Even ethical chocolate took its sweet time to take over the market.

“With Fairphone 1 we had our own supply chains, with Fairphone 2 we were more and more exploring incorporating into scalable solutions for other parties as well, and with Fairphone 3 we already have consortia — for example the cobalt we’re doing together with Royal Philips and Signify… and some other big brands I can’t mention,” van Abel tells us. “Systemic change only happens when the whole system changes — so we can’t do that as a small company ourselves.”

He says the key shift the consumer electronics industry must make to pull off transformative reform to a circular economy that’s better for humans and better for the environment is to change its business model — a centuries old model that’s still obsessed with pushing “as much as possible into the hands of consumers at the fastest rate possible”.

On this front he believes services business models offer exciting potential to retune incentives for consumers and businesses to flip the conventional model on its head.

Fairphone is currently experimenting with a service based smartphone offering — working with a local insurance company on a trial to offer Fairphone as a service, where the phone is leased not owned.

“If you sell a phone every three to five years to a person you can also survive as a company. It’s not that you can’t survive. But — having said that — one of the things we are experimenting with is Fairphone as a service… And the beautiful aspect around running a product as a service is on the profit and loss of the company. When I sell you a phone you become a cost center right away as a customer, because all the after sales, everything around it basically is cost,” he says.

“If I sell you a service and a hardware product comes with it for you to be able to use… then I’m intrinsically motivated to have you use that phone as long as possible because every time I need to make a new phone it’s cost. Whereas every month I get my money from you as a customer and I can actually keep developing my service up to a point that it is more tailor made.”

While leasing has been very common in the smartphone industry on the mobile operator side, Fairphone is approaching it from a phone maker perspective — which van Abel reckons offers potential for disconnecting “as much as possible” the use of resources from the business model attached to smartphones.

‘Fairphone as a service’ is just a pilot for now, and he concedes the model would require a lot of money to be put on the table up front to cover the cost of use of the device for several years (further lengthening already lengthy repairable-oriented device cash cycles) — but recurring subscription payments at least sound like a model that could unlock the necessary up-front capital.

(van Abel also points to changes going on in the funding space — saying impact investing is now “hot”, and adding: “We’ve been pretty successful at finding the right impact investors to support our growth.”)

“I’m pretty hopeful because [humans have] been pretty successful at selling people stuff they don’t need so I’m pretty sure that we can also reverse that into marketing stories around products that last longer and people wanting products to last longer,” he says. “There’s a whole playground [with services]. Can you imagine that you start rewarding people if they actually keep their phone longer, if they have less parts broken… Now you reward a loyal customer with a new phone — what if you reward a customer that has their phone for a very long time with a lower subscription rate, for example. So there’s so much stuff to play with in that area. Not only by phone companies but also operators and everyone that is in connection with customers.”

Fairphone founder, Bas van Abel. Image credit: Fairphone

“My vision is really the disconnect from the use of resources and the business models. That is really the key problem that we’re still dealing with — if you look at sustainability,” he adds. “From a human rights perspective we’re dealing with multiple complex situations where politics, countries, wars, all these things are attached to these supply chains — which have nothing to do with consumer electronics specifically, it has to do with the human condition. So that’s even a bigger challenge — in terms of how do we create world peace basically?”

While no one would pretend there’s an easy answer for that, changing anything for the better means being willing to start somewhere.

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[endenogatai]

Can Fairphone 3 scale ethical consumer electronics?

Fairphone, the Dutch social enterprise that’s on a mission to rethink the waste and exploitation that underpins the business of consumer electronics, has unboxed its third smartphone.

The handset, which is sold with the promise of longevity rather than cutting edge obsolescence, goes on pre-sale from today in Europe via Fairphone’s website with a suggested retail price of €450 (depending on local taxes and levies). It will ship to buyers on September 3.

Like its predecessor, the design is modular to allow the user to swap out damaged parts for replacement modules that Fairphone also sells.

Out of the box the phone comes with Android 9 preloaded. A post-launch update will make it easy for buyers to wipe Google services off their slate and install the Android Open Source Project instead.

Commenting in a statement, CEO Eva Gouwens said: “We developed the Fairphone 3 to be a real sustainable alternative on the market, which is a big step towards lasting change. By establishing a market for ethical products, we want to motivate the entire industry to act more responsibly since we cannot achieve this change alone.”

“We envision an economy where consideration for people and the planet is a natural part of doing business and according to this vision, we have created scalable ways to improve our supply chain and product,” she added.

Fairphone 3 running Android 9 out of the box

Mining an ethical niche

Since 2013, the hardware startup has focused on selling smartphones attached to a pledge of fairer working conditions for the people who assemble them, and greater transparency around the sourcing of minerals and materials needed to make them — as well as designing for longevity and repairability.

More than 80% of the volume of the Fairphone 3 is recycled, according to founder (and former CEO) Bas van Abel. He also touts its own research that suggests a Fairphone 3 owner who’s able to keep and maintain the device can save 30% of CO2 emissions or more over the product’s lifetime.

In seeking to achieve its flagship ‘fair phone’ pledge the team behind Fairphone has had to go beyond the surface hardware — and innovate on developing supply chains that can live up to an ethical agenda.

Fairphone 3’s PR flags “responsibly sourced and conflict-free tin and tungsten, recycled copper and plastics”, as well as fair trade gold which it sourced for the handset (and is working to integrate into its supply chain). It also says it’s in the process of setting up an initiative for “better sourcing of cobalt”, aka the key mineral for energy transition.

Malachite, copper and cobalt. Image credit: Fairphone

On the labor and human rights front, the Fairphone 3 is assembled by Taiwanese manufacturing partner Arima — which Fairphone says it has collaborated with to “improve employee satisfaction by improving worker representation, health and safety and by paying a bonus to workers with the aim to bridge the gap between minimum and living wages in the factory”.

In practice van Abel says this means Fairphone pays the assembly workers employed by Arima a bonus based on increased performance around its social goals. Rather than, per more usual industry practice, punishing the manufacturing partner if it fails to hit stringent delivery targets — which then encourages a punishing spiral of forced overtime that erodes workers rights and welfare.

It also has social incentives programs in three other factories that put together components for the device, such as its speakers.

Despite what are clearly laudable and lofty goals, selling fairer and more ethical smartphones remains a niche business for now, with Fairphone’s total shipments to date representing less than 0.1% of the Western European smartphone market. It is also still a European-only business. But it’s a niche that van Abel says is “growing at high speed”.

“I do believe it’s very feasible for Fairphone to [ship 200,000 smartphones per year] in the next couple of years,” he says, adding: “We can address a small part of the conscious consuming market” — pointing to Gouwens’ background at a Dutch confectionary company, Tony’s Chocolonely, which was set up in 2005 to campaign for fair trade and slave-free chocolate, and now has the biggest marketshare on chocolate in Holland.

Phones are of course far more complex to make than bars of chocolate. But in recent years a maturing smartphone market has seen a slow down in the pace of technological innovation coupled with rising commoditization that’s made differentiation a major challenge for Android OEMs especially.

So if there’s a point in time when a fair trade smartphone might stand a chance against the Samsungs, Huaweis, Xiaomis, Oppos, LGs and so on then the current moment has a fair bit to recommend it.

At the same time, concern about the environmental cost of business models that depend upon continuous resource use and generate mountains of e-waste is also growing — thanks to greater visibility and awareness of the damage caused at both ends of the pipe (including as countries like China put hard limits on the types of foreign waste they’ll accept).

“I believe that we are more and more ready for [sustainability and fair trade] in consumer electronics and I do see that the conversation in consumer electronics is definitely changing — it’s much more mature on sustainability,” says van Abel. “More and more companies are looking into it, and it’s also more demanding from the consumer perspective. You see that that’s changing as well. So it will happen. It’s just that it’s not happening fast enough.”

“We’ve been not so successful in disconnecting the [consumer electronics] business models from the use of resources yet but that is a legacy from an economic system that was set up centuries ago,” he adds. “Where growth is connected to the use of resources — and that has to do with sustainability and change and a changing mindset.”

The wider conviction, for Fairphone as a social enterprise, is to work to generate momentum that pushes the consumer electronics industry towards a circular future — where fairer conditions for workers and a reduction in waste and resource use; a focus on product longevity via repairable design and component reuse; and end of life recycling are no longer exceptional but what every player strives for.

The project is indeed a massive one. And Fairphone remains very much a work in progress — an ambitious attempt at reforming all the tarnished links in the smartphone supply chain. So yes, it’s by no means perfect.

The industry that it has to interact with still contains plenty of murky corners which a tiny company has only very limited power to sway. Even as Fairphone has punched above its weight by using campaigning roots to build consumer awareness and industry buy in that’s enabled it to enact small on-the-ground changes which have the potential to scale into something bigger.

Its investors include Bethnal Green Ventures, Pymwymic, Doen Participaties, Quadia, Dutch Good Growth Fund and ABN Amro Fund. More than $40M has gone into the business since Fairphone was founded — in seed, VC and debt financing.

“The problem with the industry is that the deeper you go into the supply chain — like the third, fourth tier — the worse it gets,” says van Abel. “So the assembly factories where you have a direct relationship are basically the ones that are doing pretty well, also because they have all these rules and things put upon them by big manufacturers. Companies are most vulnerable on the ODMs.

“So the further you go into the supply chain where they’re really making the plastics and the small metals and that kind of stuff the worse it gets. So we really want to also make sure that that is being surfaced and that we put some attention on it… Are we able to change that deep into the supply chain? It’s really difficult to get that far as a small player but we’re trying.”

“On the supply chain we’ve been going along investing into programs all along the way,” he goes on, giving the example of a child-labor free mining program it’s set up in Uganda to source fair trade gold.

“We’re working really hard with lots of partners on the ground. It’s getting off the ground now but the gold that we get from there is not connected to the supply chain of the [Fair]phone yet — so that will be an innovation that will come along the way, coming in 2020.

“What we do now is we’ve taken all the supply chains that we had for Fairphone 2 and were able to get that into Fairphone 3. So at least we have everything that we covered with Fairphone 2 but in a way that is also more scalable. Previously we had the gold through our own supply chain going into the factories. Right now we have it set up in such a way that other companies can use that same gold and the factory can scale up with that gold as well. So it’s a higher amount, it’s more scalable but we’re also setting up new initiatives.”

“Another one is cobalt which we’re investing in a lot — which is used for batteries,” he adds. “If we get that initiative up and running it’s also very interesting for the car industry to actually use that same supply chain. Because one of the things that a lot of the industry is focusing on is recycling. But we all know that there’s not enough to recycle to actually feed the supply chain with the amount of minerals we need to make our products. So we still need mining. And that’s one of the things that the industry has not been very open about.”

Virgin resources being necessary to manufacture shiny gadgets and electronics-packed machines is the industry’s dirty not-so-little secret. This means mines where minerals are dug out of the earth in order to be refined or smelted for use in the modules and components packed inside devices.

Even consumer tech giants that make claims for the labor and welfare standards of their third party assembly factory workers aren’t typically making promises that extend all the way back to the mines where the minerals essential to their devices are dug out and processed. Fairphone is at least trying to dig into the dirtiest stuff.

Conflict-free tungsten mine in Rwanda now integrated into Fairphone’s supply chain. Image credit: Fairphone

“We have an approach where we look at closed pipe supply chains for certain materials from the mines all the way to the component. And we look at the factories that are involved along the line per component because we can’t do all the factories — so we can at least say along that whole supply chain we’ve looked at the factories working it in,” says van Abel.

“If you look at mining there’s nothing beautiful about mining… Mining in itself is bad for the environment, there’s a lot of harsh working conditions, it’s in third world countries many of the times, so it’s not a focus area of a lot of these companies because it’s… a far away story. So many of these manufacturers and phone companies focus on recycling.

“In itself recycling is not bad it’s just that we still need all these virgin materials. Also recycling is kind of a last resort as I see it — reusing components would be a better thing. And even the best thing would be using the phone as long as possible.”

Repairable for half a decade+

Like its predecessor, the latest Fairphone’s flagship feature — aside from fairer and more ethical assembly — is that it’s designed to be repairable. A fact that’s front and center when you open the box and find a tiny screwdriver nestled alongside what otherwise looks a fairly standard (if slightly chunky) Android smartphone.

There’s no charger, USB cable or headphones in the box — intentional omissions to reduce unnecessary e-waste. The novel presence of a tiny metal and plastic screwdriver seems a fair trade for the usual accessories which Fairphone has calculated most phone buyers will already own. (If not, it can sell you a charger.)

Its big promise with this, its third generation handset, is that it will be supported for the next five to seven years.

van Abel tells TechCrunch he’s confident it can deliver on that “bold” pledge — having learnt some hard lessons over the past five+ years of pushing against ingrained industry habits baked into clockwork component upgrade cycles.

It wasn’t always like this. Some buyers of the first-gen Fairphone were disappointed and even angry when it announced it was ending support for that device in 2017 — meaning an early adopter would only have had between two and 3.5 years’ support for a smartphone that was sold as ‘repairable by design’.

The problem Fairphone found itself first crashing into, and next seeking to tackle head on, is that the consumer electronics industry as a whole is not geared up for sustainability and repairability but rather locked to regular (wasteful) upgrade cycles which in turn drive regular ~two-year component refresh cycles.

This tick-tock onward march of upgrades makes supporting older hardware a challenge. In seeking to go against the grain Fairphone has literally had to stockpile enough components to ensure it can offer years of spare part runway to support its devices.

In parallel, industry software has also needed to evolve so chipsets can be supported for longer — and van Abel says “a lot of software is actually changing. You can upgrade more and more easily to new software” — so it’s finally in a position to be confident that the latest handset can last.

“Our company has gotten much more mature,” he also says. “We are better equipped to deal with the scaling, the financial position has increased and has changed up to a point which is much more solid — so the whole support system, the ecosystem, around the phone has improved a lot.”

The Fairphone 3 is its second handset design to incorporate repairable modules that are designed to be accessible to the user. It comes in a translucent shell that also acts as a protective bumper and is stamped proudly down the side with the words “designed to open”.

Crack into it and you’ll find six modules that can be swapped out with a little bit of elbow grease and a Phillips #00 screwdriver — including the display, speaker and camera, as well as the battery (harking back to days when replaceable batteries were a smartphone norm).

Fairphone 3 — modularity refined

The aim of this type of modularity is not for customization or upgrades but for sustainability by increasing longevity by making it easy and cheaper to replace a damaged or defunct component vs junking the whole phone or having to take it to a specialist shop for expensive repair.

To be clear Fairphone is not offering upgradable hardware modules to boost phone performance over time but like for like replacements. It wants each Fairphone user to keep the same handset for longer — even if it gets dropped and the screen cracked, or used so much the battery loses its capacity to hold a charge.

“One of the biggest changes we’ve seen in the phone industry is that there’s small incremental innovation — which is in our benefit. So I think the time is right now,” says van Abel. “We are able to support phones longer. It has to do with the hardware, it also has to do with the software. The software you see that many of the software platforms… offer a better integration with the chipset. So also for future upgrades.

“You will see the software will run for longer time also on these chipsets — which basically are at a point where you will not run WhatsApp faster on a newer chipset. For some [other] stuff, especially on 3D gaming and the really high end computing stuff, it makes sense to go to the new processors but most of the stuff you will be able to do on the average processor on the phone. So it paves the way to keep phones in the hands of the consumers for a longer time, which makes sense. Because it’s cheaper for consumers… and it also is more sustainable.”

With the Fairphone 3 he says the company sought to dial down the “radical” modularity of its earlier crack at the concept — so the result is less of a ‘party trick’ smartphone design, as the Fairphone 2 was (he dubs it a “show off” phone) — and more, well, dull but worthy; modularity as a utility that’s there to enable (occasional) repairs.

“You don’t need the phone to be so super smooth in taking apart to be able to repair it,” he says. “Fairphone 2 goes beyond the idea of repairability. It’s more a show off phone in that sense. And that also comes with risks.”

Fairphone 2 — its earlier, flashier crack at modularity

Refining its approach to modularity also means Fairphone has been able to reduce the cost of the handset. Consumers will see that in a cheaper price-tag (€75 less than the prior model) — which puts it in reach of a bigger group of potential buyers.

The design is a cost (and risk) saver for Fairphone too in that it’s easier to manufacturer.  And cost and sales volume are important when you’re trying to demonstrate that making sustainable hardware can still turn a profile. (Not that Fairphone is there yet — but finding a path to profitability is a core part of the mission.)

For users the only slight downsize of the reconfigured modular design — which has a full 13 screws just holding the display module in place — is that getting to the guts involves more fiddling than it used to. Which again seems a fair trade given how rarely you should need to get into it.

“Fairphone 3 there’s less risk involved in manufacturing, the design is more sturdy so in that sense it’s also a phone we can scale with as a company — so the whole ecosystem around it; the quality control,” says van Abel. “We have a big team now in China which we didn’t have with Fairphone 2. So we are much more confident with this phone we can offer a very high qualitative product.”

If the aim of your social enterprise is to reduce e-waste and overall environmental impact by selling phones that are designed to last longer than rival devices there is something of a natural tension about releasing any new handset model at all.

When I put this to van Abel he agrees but points to the push and pull around the product, given the unavoidable need for Fairphone “to stay relevant” by appealing to smartphone buyers, and given the industry “not working int he way that we would like it to work”, as he puts it — i.e not being geared for longevity.

Fairphone definitely needs to be able to sell phones if it’s to make a positive dent in consumer electronics practices and processes. Which means enticing buyers is important.

And on that front its last model wasn’t an amazing success — saddled with uninspiring hardware at a fair trade premium price. (A pretty biting 2016 review by Wired called it “ethical but ugly”, complaining also that it had a slow camera and dated hardware.) Closing that ‘compromise gap’ is thus a key aim with Fairphone 3.

van Abel enthusiastically talks up the performance specs, noting particularly that they’ve put a lot of work into improving battery performance (the removable cell is 3000mAh, and includes fast charging) and on software engineering to integrate the camera — which he claims, as far as performance and photo quality goes, is “on par” with high end smartphones “that cost twice as much”.

At a glance the 5.7 inch full-HD screen also looks clear and crisp. Plus there’s a fingerprint reader on board, as well as NFC and 4G. Inside is a Qualcomm Snapdragon 632 engine, 4GB of RAM and a generous 64GB of storage (further expandable via an SD card slot). Dual SIM slots are another welcome touch.

The handset comes preloaded with a vanilla implementation of Android 9 (Pie). But as noted above buyers will be able to switch for a non-Google alternative — via an updater that will let them wipe and install the Android Open Source Project flavor of the OS. (The updater will come post-launch, according to van Abel, who notes that around 5% of Fairphone users opt to go full open source.)

Ethics aside, one straight up hardware boast the Fairphone 3’s got going for it is that it has a 3.5mm headphone jack. Which is something you won’t find on Apple’s latest iPhones. Nor on Samsung’s newest flagship. The march of tech progress has erased the accessory-friendly hole from premium devices.

So it’s a nice additional perk for Fairphone 3 buyers who’ve invested in wired headphones — meaning they can keep using other kit for longer too.

From fair trade chocolate to smartphones as a service

The smartphone industry has marched at a pretty steady clip since Fairphone 2 was released at the back end of 2015, with rivals updating their own much more expansive product portfolios at least annually. So an upgrade more than three years after the last Fairphone doesn’t seem overly wasteful or indulgent.

And while Fairphone has never pretended it’s going to be able to compete, like for like, with top tier smartphones on pure hardware specs and features it does need to be able to offer a phone that’s compelling enough to convince buyers to switch.

Good enough smartphone hardware with a guarantee of repairability and which is combined what it calls “fair specs” — i.e. a minimum wage for a workers in its supply chain plus a bonus that aims to close the gap with that and a living wage — is its sales pitch for Fairphone 3.

Who Fairphone buyers are is also expanding, according to van Abel. So while, two years ago, he talked of the typical user being a ‘Gen X German with a master’s degree’, now the target is any conscientious consumer.

Selling at least 100,000 handsets per year is the goal. To date it’s only sold ~175,000 Fairphones in total — through pre-sales and organic growth — but it reckons the new device will enable it to scale beyond that core fan-base to address a wider community of ethical consumers.

It’s being helped to that end by expanded carrier partnerships — such as one with Orange in France which will see the mobile operator range the handset in 600 stores.

Scaling sales is another necessary part of the social mission, says van Abel — as Fairphone needs to show its social impact investors that it’s growing demand and building a market for ethical alternatives.

When — or even whether — there will be a Fairphone 4 is a question he isn’t keen to engage with. Clearly the hope is Fairphone 3 packs enough smartphone punch to go the distance. Though he hints it might look to offer additional smartphones in order to enter the US, a major market it’s so far not addressed at all.

While Fairphone has had a singular device focus to date, van Abel says it’s thinking about applying its hard won learnings around electronics supply chains to other types of consumer devices — suggesting ‘Fair’ could end up as a brand prefix atop an assortment of consumer gadgets.

“I think Fairphone has developed itself — even though it’s called Fairphone — into a brand that I’m pretty sure can go into a full blown, sustainable, consumer electronics brand. Because there are none,” he tells TechCrunch. “There are not so many brands in the industry that can differentiate on what they stand for. Apple does pretty well on design. But for the rest I don’t know a lot of premium brands that can differentiate on something that they’re really good at. And we’re good at creating social innovation and sustainability. And a lot of the supply chains that we’re using already can be used for other products as well.”

More broadly, the business is evolving to sell sustainably-minded process change back to the electronics industry itself — which of course needs to reform wholesale in order to enact the kind of root and branch change needed to support a fully circular economy.

In practice this means the ethical supply chains it establishes are intended to be open for others in the industry to use too. So Fairphone’s business of making ‘fairer’ handsets also functions as a showcase and case study to encourage wider industry reform — including via some direct partnerships that allow its own tiny orders for key minerals to be fulfilled by it piggybacking and scaling the order with the help of larger buyers.

Of course everything in electronics is connected. So real change isn’t going to happen overnight. Which makes being committed to stick at it and drive consumer awareness essential. It’s a long game. Even ethical chocolate took its sweet time to take over the market.

“With Fairphone 1 we had our own supply chains, with Fairphone 2 we were more and more exploring incorporating into scalable solutions for other parties as well, and with Fairphone 3 we already have consortia — for example the cobalt we’re doing together with Royal Philips and Signify… and some other big brands I can’t mention,” van Abel tells us. “Systemic change only happens when the whole system changes — so we can’t do that as a small company ourselves.”

He says the key shift the consumer electronics industry must make to pull off transformative reform to a circular economy that’s better for humans and better for the environment is to change its business model — a centuries old model that’s still obsessed with pushing “as much as possible into the hands of consumers at the fastest rate possible”.

On this front he believes services business models offer exciting potential to retune incentives for consumers and businesses to flip the conventional model on its head.

Fairphone is currently experimenting with a service based smartphone offering — working with a local insurance company on a trial to offer Fairphone as a service, where the phone is leased not owned.

“If you sell a phone every three to five years to a person you can also survive as a company. It’s not that you can’t survive. But — having said that — one of the things we are experimenting with is Fairphone as a service… And the beautiful aspect around running a product as a service is on the profit and loss of the company. When I sell you a phone you become a cost center right away as a customer, because all the after sales, everything around it basically is cost,” he says.

“If I sell you a service and a hardware product comes with it for you to be able to use… then I’m intrinsically motivated to have you use that phone as long as possible because every time I need to make a new phone it’s cost. Whereas every month I get my money from you as a customer and I can actually keep developing my service up to a point that it is more tailor made.”

While leasing has been very common in the smartphone industry on the mobile operator side, Fairphone is approaching it from a phone maker perspective — which van Abel reckons offers potential for disconnecting “as much as possible” the use of resources from the business model attached to smartphones.

‘Fairphone as a service’ is just a pilot for now, and he concedes the model would require a lot of money to be put on the table up front to cover the cost of use of the device for several years (further lengthening already lengthy repairable-oriented device cash cycles) — but recurring subscription payments at least sound like a model that could unlock the necessary up-front capital.

(van Abel also points to changes going on in the funding space — saying impact investing is now “hot”, and adding: “We’ve been pretty successful at finding the right impact investors to support our growth.”)

“I’m pretty hopeful because [humans have] been pretty successful at selling people stuff they don’t need so I’m pretty sure that we can also reverse that into marketing stories around products that last longer and people wanting products to last longer,” he says. “There’s a whole playground [with services]. Can you imagine that you start rewarding people if they actually keep their phone longer, if they have less parts broken… Now you reward a loyal customer with a new phone — what if you reward a customer that has their phone for a very long time with a lower subscription rate, for example. So there’s so much stuff to play with in that area. Not only by phone companies but also operators and everyone that is in connection with customers.”

Fairphone founder, Bas van Abel. Image credit: Fairphone

“My vision is really the disconnect from the use of resources and the business models. That is really the key problem that we’re still dealing with — if you look at sustainability,” he adds. “From a human rights perspective we’re dealing with multiple complex situations where politics, countries, wars, all these things are attached to these supply chains — which have nothing to do with consumer electronics specifically, it has to do with the human condition. So that’s even a bigger challenge — in terms of how do we create world peace basically?”

While no one would pretend there’s an easy answer for that, changing anything for the better means being willing to start somewhere.

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[technicalsolutions88]

Fairphone, the Dutch social enterprise that’s on a mission to rethink the waste and exploitation that underpins the business of consumer electronics, has unboxed its third smartphone.

The handset, which is sold with the promise of longevity rather than cutting edge obsolescence, goes on pre-sale from today in Europe via Fairphone’s website with a suggested retail price of €450 (depending on local taxes and levies). It will ship to buyers on September 3.

Like its predecessor, the design is modular to allow the user to swap out damaged parts for replacement modules that Fairphone also sells.

Out of the box the phone comes with Android 9 preloaded. A post-launch update will make it easy for buyers to wipe Google services off their slate and install the Android Open Source Project instead.

Commenting in a statement, CEO Eva Gouwens said: “We developed the Fairphone 3 to be a real sustainable alternative on the market, which is a big step towards lasting change. By establishing a market for ethical products, we want to motivate the entire industry to act more responsibly since we cannot achieve this change alone.”

“We envision an economy where consideration for people and the planet is a natural part of doing business and according to this vision, we have created scalable ways to improve our supply chain and product,” she added.

Fairphone 3 running Android 9 out of the box

Mining an ethical niche

Since 2013, the hardware startup has focused on selling smartphones attached to a pledge of fairer working conditions for the people who assemble them, and greater transparency around the sourcing of minerals and materials needed to make them — as well as designing for longevity and repairability.

More than 80% of the volume of the Fairphone 3 is recycled, according to founder (and former CEO) Bas van Abel. He also touts its own research that suggests a Fairphone 3 owner who’s able to keep and maintain the device can save 30% of CO2 emissions or more over the product’s lifetime.

In seeking to achieve its flagship ‘fair phone’ pledge the team behind Fairphone has had to go beyond the surface hardware — and innovate on developing supply chains that can live up to an ethical agenda.

Fairphone 3’s PR flags “responsibly sourced and conflict-free tin and tungsten, recycled copper and plastics”, as well as fair trade gold which it sourced for the handset (and is working to integrate into its supply chain). It also says it’s in the process of setting up an initiative for “better sourcing of cobalt”, aka the key mineral for energy transition.

Malachite, copper and cobalt. Image credit: Fairphone

On the labor and human rights front, the Fairphone 3 is assembled by Taiwanese manufacturing partner Arima — which Fairphone says it has collaborated with to “improve employee satisfaction by improving worker representation, health and safety and by paying a bonus to workers with the aim to bridge the gap between minimum and living wages in the factory”.

In practice van Abel says this means Fairphone pays the assembly workers employed by Arima a bonus based on increased performance around its social goals. Rather than, per more usual industry practice, punishing the manufacturing partner if it fails to hit stringent delivery targets — which then encourages a punishing spiral of forced overtime that erodes workers rights and welfare.

It also has social incentives programs in three other factories that put together components for the device, such as its speakers.

Despite what are clearly laudable and lofty goals, selling fairer and more ethical smartphones remains a niche business for now, with Fairphone’s total shipments to date representing less than 0.1% of the Western European smartphone market. It is also still a European-only business. But it’s a niche that van Abel says is “growing at high speed”.

“I do believe it’s very feasible for Fairphone to [ship 200,000 smartphones per year] in the next couple of years,” he says, adding: “We can address a small part of the conscious consuming market” — pointing to Gouwens’ background at a Dutch confectionary company, Tony’s Chocolonely, which was set up in 2005 to campaign for fair trade and slave-free chocolate, and now has the biggest marketshare on chocolate in Holland.

Phones are of course far more complex to make than bars of chocolate. But in recent years a maturing smartphone market has seen a slow down in the pace of technological innovation coupled with rising commoditization that’s made differentiation a major challenge for Android OEMs especially.

So if there’s a point in time when a fair trade smartphone might stand a chance against the Samsungs, Huaweis, Xiaomis, Oppos, LGs and so on then the current moment has a fair bit to recommend it.

At the same time, concern about the environmental cost of business models that depend upon continuous resource use and generate mountains of e-waste is also growing — thanks to greater visibility and awareness of the damage caused at both ends of the pipe (including as countries like China put hard limits on the types of foreign waste they’ll accept).

“I believe that we are more and more ready for [sustainability and fair trade] in consumer electronics and I do see that the conversation in consumer electronics is definitely changing — it’s much more mature on sustainability,” says van Abel. “More and more companies are looking into it, and it’s also more demanding from the consumer perspective. You see that that’s changing as well. So it will happen. It’s just that it’s not happening fast enough.”

“We’ve been not so successful in disconnecting the [consumer electronics] business models from the use of resources yet but that is a legacy from an economic system that was set up centuries ago,” he adds. “Where growth is connected to the use of resources — and that has to do with sustainability and change and a changing mindset.”

The wider conviction, for Fairphone as a social enterprise, is to work to generate momentum that pushes the consumer electronics industry towards a circular future — where fairer conditions for workers and a reduction in waste and resource use; a focus on product longevity via repairable design and component reuse; and end of life recycling are no longer exceptional but what every player strives for.

The project is indeed a massive one. And Fairphone remains very much a work in progress — an ambitious attempt at reforming all the tarnished links in the smartphone supply chain. So yes, it’s by no means perfect.

The industry that it has to interact with still contains plenty of murky corners which a tiny company has only very limited power to sway. Even as Fairphone has punched above its weight by using campaigning roots to build consumer awareness and industry buy in that’s enabled it to enact small on-the-ground changes which have the potential to scale into something bigger.

Its investors include Bethnal Green Ventures, Pymwymic, Doen Participaties, Quadia, Dutch Good Growth Fund and ABN Amro Fund. More than $40M has gone into the business since Fairphone was founded — in seed, VC and debt financing.

“The problem with the industry is that the deeper you go into the supply chain — like the third, fourth tier — the worse it gets,” says van Abel. “So the assembly factories where you have a direct relationship are basically the ones that are doing pretty well, also because they have all these rules and things put upon them by big manufacturers. Companies are most vulnerable on the ODMs.

“So the further you go into the supply chain where they’re really making the plastics and the small metals and that kind of stuff the worse it gets. So we really want to also make sure that that is being surfaced and that we put some attention on it… Are we able to change that deep into the supply chain? It’s really difficult to get that far as a small player but we’re trying.”

“On the supply chain we’ve been going along investing into programs all along the way,” he goes on, giving the example of a child-labor free mining program it’s set up in Uganda to source fair trade gold.

“We’re working really hard with lots of partners on the ground. It’s getting off the ground now but the gold that we get from there is not connected to the supply chain of the [Fair]phone yet — so that will be an innovation that will come along the way, coming in 2020.

“What we do now is we’ve taken all the supply chains that we had for Fairphone 2 and were able to get that into Fairphone 3. So at least we have everything that we covered with Fairphone 2 but in a way that is also more scalable. Previously we had the gold through our own supply chain going into the factories. Right now we have it set up in such a way that other companies can use that same gold and the factory can scale up with that gold as well. So it’s a higher amount, it’s more scalable but we’re also setting up new initiatives.”

“Another one is cobalt which we’re investing in a lot — which is used for batteries,” he adds. “If we get that initiative up and running it’s also very interesting for the car industry to actually use that same supply chain. Because one of the things that a lot of the industry is focusing on is recycling. But we all know that there’s not enough to recycle to actually feed the supply chain with the amount of minerals we need to make our products. So we still need mining. And that’s one of the things that the industry has not been very open about.”

Virgin resources being necessary to manufacture shiny gadgets and electronics-packed machines is the industry’s dirty not-so-little secret. This means mines where minerals are dug out of the earth in order to be refined or smelted for use in the modules and components packed inside devices.

Even consumer tech giants that make claims for the labor and welfare standards of their third party assembly factory workers aren’t typically making promises that extend all the way back to the mines where the minerals essential to their devices are dug out and processed. Fairphone is at least trying to dig into the dirtiest stuff.

Conflict-free tungsten mine in Rwanda now integrated into Fairphone’s supply chain. Image credit: Fairphone

“We have an approach where we look at closed pipe supply chains for certain materials from the mines all the way to the component. And we look at the factories that are involved along the line per component because we can’t do all the factories — so we can at least say along that whole supply chain we’ve looked at the factories working it in,” says van Abel.

“If you look at mining there’s nothing beautiful about mining… Mining in itself is bad for the environment, there’s a lot of harsh working conditions, it’s in third world countries many of the times, so it’s not a focus area of a lot of these companies because it’s… a far away story. So many of these manufacturers and phone companies focus on recycling.

“In itself recycling is not bad it’s just that we still need all these virgin materials. Also recycling is kind of a last resort as I see it — reusing components would be a better thing. And even the best thing would be using the phone as long as possible.”

Repairable for half a decade+

Like its predecessor, the latest Fairphone’s flagship feature — aside from fairer and more ethical assembly — is that it’s designed to be repairable. A fact that’s front and center when you open the box and find a tiny screwdriver nestled alongside what otherwise looks a fairly standard (if slightly chunky) Android smartphone.

There’s no charger, USB cable or headphones in the box — intentional omissions to reduce unnecessary e-waste. The novel presence of a tiny metal and plastic screwdriver seems a fair trade for the usual accessories which Fairphone has calculated most phone buyers will already own. (If not, it can sell you a charger.)

Its big promise with this, its third generation handset, is that it will be supported for the next five to seven years.

van Abel tells TechCrunch he’s confident it can deliver on that “bold” pledge — having learnt some hard lessons over the past five+ years of pushing against ingrained industry habits baked into clockwork component upgrade cycles.

It wasn’t always like this. Some buyers of the first-gen Fairphone were disappointed and even angry when it announced it was ending support for that device in 2017 — meaning an early adopter would only have had between two and 3.5 years’ support for a smartphone that was sold as ‘repairable by design’.

The problem Fairphone found itself first crashing into, and next seeking to tackle head on, is that the consumer electronics industry as a whole is not geared up for sustainability and repairability but rather locked to regular (wasteful) upgrade cycles which in turn drive regular ~two-year component refresh cycles.

This tick-tock onward march of upgrades makes supporting older hardware a challenge. In seeking to go against the grain Fairphone has literally had to stockpile enough components to ensure it can offer years of spare part runway to support its devices.

In parallel, industry software has also needed to evolve so chipsets can be supported for longer — and van Abel says “a lot of software is actually changing. You can upgrade more and more easily to new software” — so it’s finally in a position to be confident that the latest handset can last.

“Our company has gotten much more mature,” he also says. “We are better equipped to deal with the scaling, the financial position has increased and has changed up to a point which is much more solid — so the whole support system, the ecosystem, around the phone has improved a lot.”

The Fairphone 3 is its second handset design to incorporate repairable modules that are designed to be accessible to the user. It comes in a translucent shell that also acts as a protective bumper and is stamped proudly down the side with the words “designed to open”.

Crack into it and you’ll find six modules that can be swapped out with a little bit of elbow grease and a Phillips #00 screwdriver — including the display, speaker and camera, as well as the battery (harking back to days when replaceable batteries were a smartphone norm).

Fairphone 3 — modularity refined

The aim of this type of modularity is not for customization or upgrades but for sustainability by increasing longevity by making it easy and cheaper to replace a damaged or defunct component vs junking the whole phone or having to take it to a specialist shop for expensive repair.

To be clear Fairphone is not offering upgradable hardware modules to boost phone performance over time but like for like replacements. It wants each Fairphone user to keep the same handset for longer — even if it gets dropped and the screen cracked, or used so much the battery loses its capacity to hold a charge.

“One of the biggest changes we’ve seen in the phone industry is that there’s small incremental innovation — which is in our benefit. So I think the time is right now,” says van Abel. “We are able to support phones longer. It has to do with the hardware, it also has to do with the software. The software you see that many of the software platforms… offer a better integration with the chipset. So also for future upgrades.

“You will see the software will run for longer time also on these chipsets — which basically are at a point where you will not run WhatsApp faster on a newer chipset. For some [other] stuff, especially on 3D gaming and the really high end computing stuff, it makes sense to go to the new processors but most of the stuff you will be able to do on the average processor on the phone. So it paves the way to keep phones in the hands of the consumers for a longer time, which makes sense. Because it’s cheaper for consumers… and it also is more sustainable.”

With the Fairphone 3 he says the company sought to dial down the “radical” modularity of its earlier crack at the concept — so the result is less of a ‘party trick’ smartphone design, as the Fairphone 2 was (he dubs it a “show off” phone) — and more, well, dull but worthy; modularity as a utility that’s there to enable (occasional) repairs.

“You don’t need the phone to be so super smooth in taking apart to be able to repair it,” he says. “Fairphone 2 goes beyond the idea of repairability. It’s more a show off phone in that sense. And that also comes with risks.”

Fairphone 2 — its earlier crack at modularity

Refining its approach to modularity also means Fairphone has been able to reduce the cost of the handset. Consumers will see that in a cheaper price-tag (€75 less than the prior model) — which puts it in reach of a bigger group of potential buyers.

The design is a cost (and risk) saver for Fairphone too in that it’s easier to manufacturer.  And cost and sales volume are important when you’re trying to demonstrate that making sustainable hardware can still turn a profile. (Not that Fairphone is there yet — but finding a path to profitability is a core part of the mission.)

For users the only slight downsize of the reconfigured modular design — which has a full 13 screws just holding the display module in place — is that getting to the guts involves more fiddling than it used to. Which again seems a fair trade given how rarely you should need to get into it.

“Fairphone 3 there’s less risk involved in manufacturing, the design is more sturdy so in that sense it’s also a phone we can scale with as a company — so the whole ecosystem around it; the quality control,” says van Abel. “We have a big team now in China which we didn’t have with Fairphone 2. So we are much more confident with this phone we can offer a very high qualitative product.”

If the aim of your social enterprise is to reduce e-waste and overall environmental impact by selling phones that are designed to last longer than rival devices there is something of a natural tension about releasing any new handset model at all.

When I put this to van Abel he agrees but points to the push and pull around the product, given the unavoidable need for Fairphone “to stay relevant” by appealing to smartphone buyers, and given the industry “not working int he way that we would like it to work”, as he puts it — i.e not being geared for longevity.

Fairphone definitely needs to be able to sell phones if it’s to make a positive dent in consumer electronics practices and processes. Which means enticing buyers is important.

And on that front its last model wasn’t an amazing success — saddled with uninspiring hardware at a fair trade premium price. (A pretty biting 2016 review by Wired called it “ethical but ugly”, complaining also that it had a slow camera and dated hardware.) Closing that ‘compromise gap’ is thus a key aim with Fairphone 3.

van Abel enthusiastically talks up the performance specs, noting particularly that they’ve put a lot of work into improving battery performance (the removable cell is 3000mAh, and includes fast charging) and on software engineering to integrate the camera — which he claims, as far as performance and photo quality goes, is “on par” with high end smartphones “that cost twice as much”.

At a glance the 5.7 inch full-HD screen also looks clear and crisp. Plus there’s a fingerprint reader on board, as well as NFC and 4G. Inside is a Qualcomm Snapdragon 632 engine, 4GB of RAM and a generous 64GB of storage (further expandable via an SD card slot). Dual SIM slots are another welcome touch.

The handset comes preloaded with a vanilla implementation of Android 9 (Pie). But as noted above buyers will be able to switch for a non-Google alternative — via an updater that will let them wipe and install the Android Open Source Project flavor of the OS. (The updater will come post-launch, according to van Abel, who notes that around 5% of Fairphone users opt to go full open source.)

Ethics aside, one straight up hardware boast the Fairphone 3’s got going for it is that it has a 3.5mm headphone jack. Which is something you won’t find on Apple’s latest iPhones. Nor on Samsung’s newest flagship. The march of tech progress has erased the accessory-friendly hole from premium devices.

So it’s a nice additional perk for Fairphone 3 buyers who’ve invested in wired headphones — meaning they can keep using other kit for longer too.

From fair trade chocolate to smartphones as a service

The smartphone industry has marched at a pretty steady clip since Fairphone 2 was released at the back end of 2015, with rivals updating their own much more expansive product portfolios at least annually. So an upgrade more than three years after the last Fairphone doesn’t seem overly wasteful or indulgent.

And while Fairphone has never pretended it’s going to be able to compete, like for like, with top tier smartphones on pure hardware specs and features it does need to be able to offer a phone that’s compelling enough to convince buyers to switch.

Good enough smartphone hardware with a guarantee of repairability and which is combined what it calls “fair specs” — i.e. a minimum wage for a workers in its supply chain plus a bonus that aims to close the gap with that and a living wage — is its sales pitch for Fairphone 3.

Who Fairphone buyers are is also expanding, according to van Abel. So while, two years ago, he talked of the typical user being a ‘Gen X German with a master’s degree’, now the target is any conscientious consumer.

Selling at least 100,000 handsets per year is the goal. To date it’s only sold ~175,000 Fairphones in total — through pre-sales and organic growth — but it reckons the new device will enable it to scale beyond that core fan-base to address a wider community of ethical consumers.

It’s being helped to that end by expanded carrier partnerships — such as one with Orange in France which will see the mobile operator range the handset in 600 stores.

Scaling sales is another necessary part of the social mission, says van Abel — as Fairphone needs to show its social impact investors that it’s growing demand and building a market for ethical alternatives.

When — or even whether — there will be a Fairphone 4 is a question he isn’t keen to engage with. Clearly the hope is Fairphone 3 packs enough smartphone punch to go the distance. Though he hints it might look to offer additional smartphones in order to enter the US, a major market it’s so far not addressed at all.

While Fairphone has had a singular device focus to date, van Abel says it’s thinking about applying its hard won learnings around electronics supply chains to other types of consumer devices — suggesting ‘Fair’ could end up as a brand prefix atop an assortment of consumer gadgets.

“I think Fairphone has developed itself — even though it’s called Fairphone — into a brand that I’m pretty sure can go into a full blown, sustainable, consumer electronics brand. Because there are none,” he tells TechCrunch. “There are not so many brands in the industry that can differentiate on what they stand for. Apple does pretty well on design. But for the rest I don’t know a lot of premium brands that can differentiate on something that they’re really good at. And we’re good at creating social innovation and sustainability. And a lot of the supply chains that we’re using already can be used for other products as well.”

More broadly, the business is evolving to sell sustainably-minded process change back to the electronics industry itself — which of course needs to reform wholesale in order to enact the kind of root and branch change needed to support a fully circular economy.

In practice this means the ethical supply chains it establishes are intended to be open for others in the industry to use too. So Fairphone’s business of making ‘fairer’ handsets also functions as a showcase and case study to encourage wider industry reform — including via some direct partnerships that allow its own tiny orders for key minerals to be fulfilled by it piggybacking and scaling the order with the help of larger buyers.

Of course everything in electronics is connected. So real change isn’t going to happen overnight. Which makes being committed to stick at it and drive consumer awareness essential. It’s a long game. Even ethical chocolate took its sweet time to take over the market.

“With Fairphone 1 we had our own supply chains, with Fairphone 2 we were more and more exploring incorporating into scalable solutions for other parties as well, and with Fairphone 3 we already have consortia — for example the cobalt we’re doing together with Royal Philips and Signify… and some other big brands I can’t mention,” van Abel tells us. “Systemic change only happens when the whole system changes — so we can’t do that as a small company ourselves.”

He says the key shift the consumer electronics industry must make to pull off transformative reform to a circular economy that’s better for humans and better for the environment is to change its business model — a centuries old model that’s still obsessed with pushing “as much as possible into the hands of consumers at the fastest rate possible”.

On this front he believes services business models offer exciting potential to retune incentives for consumers and businesses to flip the conventional model on its head.

Fairphone is currently experimenting with a service based smartphone offering — working with an insurance company on a trial to offer Fairphone as a service, where the phone is leased not owned.

“If you sell a phone every three to five years to a person you can also survive as a company. It’s not that you can’t survive. But — having said that — one of the things we are experimenting with is Fairphone as a service… And the beautiful aspect around running a product as a service is on the profit and loss of the company. When I sell you a phone you become a cost center right away as a customer, because all the after sales, everything around it basically is cost,” he says.

“If I sell you a service and a hardware product comes with it for you to be able to use… then I’m intrinsically motivated to have you use that phone as long as possible because every time I need to make a new phone it’s cost. Whereas every month I get my money from you as a customer and I can actually keep developing my service up to a point that it is more tailor made.”

While leasing has been very common in the smartphone industry on the mobile operator side, Fairphone is approaching it from a phone maker perspective — which van Abel reckons offers potential for disconnecting “as much as possible” the use of resources from the business model attached to smartphones.

‘Fairphone as a service’ is just a pilot for now, and he concedes the model would require a lot of money to be put on the table up front to cover the cost of use of the device for several years (further lengthening already lengthy repairable-oriented device cash cycles) — but recurring subscription payments at least sound like a model that could unlock the necessary up-front capital.

(van Abel also points to changes going on in the funding space — saying impact investing is now “hot”, and adding: “We’ve been pretty successful at finding the right impact investors to support our growth.”)

“I’m pretty hopeful because [humans have] been pretty successful at selling people stuff they don’t need so I’m pretty sure that we can also reverse that into marketing stories around products that last longer and people wanting products to last longer,” he says. “There’s a whole playground [with services]. Can you imagine that you start rewarding people if they actually keep their phone longer, if they have less parts broken… Now you reward a loyal customer with a new phone — what if you reward a customer that has their phone for a very long time with a lower subscription rate, for example. So there’s so much stuff to play with in that area. Not only by phone companies but also operators and everyone that is in connection with customers.”

Fairphone founder, Bas van Abel. Image credit: Fairphone

“My vision is really the disconnect from the use of resources and the business models. That is really the key problem that we’re still dealing with — if you look at sustainability,” he adds. “From a human rights perspective we’re dealing with multiple complex situations where politics, countries, wars, all these things are attached to these supply chains — which have nothing to do with consumer electronics specifically, it has to do with the human condition. So that’s even a bigger challenge — in terms of how do we create world peace basically?”

While no one would pretend there’s an easy answer for that, changing anything for the better means being willing to start somewhere.

from Mobile – TechCrunch https://ift.tt/2KYxKN3 ORIGINAL CONTENT FROM: https://techcrunch.com/

[sheminecrafts]

Can Fairphone 3 scale ethical consumer electronics?

Fairphone, the Dutch social enterprise that’s on a mission to rethink the waste and exploitation that underpins the business of consumer electronics, has unboxed its third smartphone.

The handset, which is sold with the promise of longevity rather than cutting edge obsolescence, goes on pre-sale from today in Europe via Fairphone’s website with a suggested retail price of €450 (depending on local taxes and levies). It will ship to buyers on September 3.

Like its predecessor, the design is modular to allow the user to swap out damaged parts for replacement modules that Fairphone also sells.

Out of the box the phone comes with Android 9 preloaded. A post-launch update will make it easy for buyers to wipe Google services off their slate and install the Android Open Source Project instead.

Commenting in a statement, CEO Eva Gouwens said: “We developed the Fairphone 3 to be a real sustainable alternative on the market, which is a big step towards lasting change. By establishing a market for ethical products, we want to motivate the entire industry to act more responsibly since we cannot achieve this change alone.”

“We envision an economy where consideration for people and the planet is a natural part of doing business and according to this vision, we have created scalable ways to improve our supply chain and product,” she added.

Fairphone 3 running Android 9 out of the box

Mining an ethical niche

Since 2013, the hardware startup has focused on selling smartphones attached to a pledge of fairer working conditions for the people who assemble them, and greater transparency around the sourcing of minerals and materials needed to make them — as well as designing for longevity and repairability.

More than 80% of the volume of the Fairphone 3 is recycled, according to founder (and former CEO) Bas van Abel. He also touts its own research that suggests a Fairphone 3 owner who’s able to keep and maintain the device can save 30% of CO2 emissions or more over the product’s lifetime.

In seeking to achieve its flagship ‘fair phone’ pledge the team behind Fairphone has had to go beyond the surface hardware — and innovate on developing supply chains that can live up to an ethical agenda.

Fairphone 3’s PR flags “responsibly sourced and conflict-free tin and tungsten, recycled copper and plastics”, as well as fair trade gold which it sourced for the handset (and is working to integrate into its supply chain). It also says it’s in the process of setting up an initiative for “better sourcing of cobalt”, aka the key mineral for energy transition.

Malachite, copper and cobalt. Image credit: Fairphone

On the labor and human rights front, the Fairphone 3 is assembled by Taiwanese manufacturing partner Arima — which Fairphone says it has collaborated with to “improve employee satisfaction by improving worker representation, health and safety and by paying a bonus to workers with the aim to bridge the gap between minimum and living wages in the factory”.

In practice van Abel says this means Fairphone pays the assembly workers employed by Arima a bonus based on increased performance around its social goals. Rather than, per more usual industry practice, punishing the manufacturing partner if it fails to hit stringent delivery targets — which then encourages a punishing spiral of forced overtime that erodes workers rights and welfare.

It also has social incentives programs in three other factories that put together components for the device, such as its speakers.

Despite what are clearly laudable and lofty goals, selling fairer and more ethical smartphones remains a niche business for now, with Fairphone’s total shipments to date representing less than 0.1% of the Western European smartphone market. It is also still a European-only business. But it’s a niche that van Abel says is “growing at high speed”.

“I do believe it’s very feasible for Fairphone to [ship 200,000 smartphones per year] in the next couple of years,” he says, adding: “We can address a small part of the conscious consuming market” — pointing to Gouwens’ background at a Dutch confectionary company, Tony’s Chocolonely, which was set up in 2005 to campaign for fair trade and slave-free chocolate, and now has the biggest marketshare on chocolate in Holland.

Phones are of course far more complex to make than bars of chocolate. But in recent years a maturing smartphone market has seen a slow down in the pace of technological innovation coupled with rising commoditization that’s made differentiation a major challenge for Android OEMs especially.

So if there’s a point in time when a fair trade smartphone might stand a chance against the Samsungs, Huaweis, Xiaomis, Oppos, LGs and so on then the current moment has a fair bit to recommend it.

At the same time, concern about the environmental cost of business models that depend upon continuous resource use and generate mountains of e-waste is also growing — thanks to greater visibility and awareness of the damage caused at both ends of the pipe (including as countries like China put hard limits on the types of foreign waste they’ll accept).

“I believe that we are more and more ready for [sustainability and fair trade] in consumer electronics and I do see that the conversation in consumer electronics is definitely changing — it’s much more mature on sustainability,” says van Abel. “More and more companies are looking into it, and it’s also more demanding from the consumer perspective. You see that that’s changing as well. So it will happen. It’s just that it’s not happening fast enough.”

“We’ve been not so successful in disconnecting the [consumer electronics] business models from the use of resources yet but that is a legacy from an economic system that was set up centuries ago,” he adds. “Where growth is connected to the use of resources — and that has to do with sustainability and change and a changing mindset.”

The wider conviction, for Fairphone as a social enterprise, is to work to generate momentum that pushes the consumer electronics industry towards a circular future — where fairer conditions for workers and a reduction in waste and resource use; a focus on product longevity via repairable design and component reuse; and end of life recycling are no longer exceptional but what every player strives for.

The project is indeed a massive one. And Fairphone remains very much a work in progress — an ambitious attempt at reforming all the tarnished links in the smartphone supply chain. So yes, it’s by no means perfect.

The industry that it has to interact with still contains plenty of murky corners which a tiny company has only very limited power to sway. Even as Fairphone has punched above its weight by using campaigning roots to build consumer awareness and industry buy in that’s enabled it to enact small on-the-ground changes which have the potential to scale into something bigger.

Its investors include Bethnal Green Ventures, Pymwymic, Doen Participaties, Quadia, Dutch Good Growth Fund and ABN Amro Fund. More than $40M has gone into the business since Fairphone was founded — in seed, VC and debt financing.

“The problem with the industry is that the deeper you go into the supply chain — like the third, fourth tier — the worse it gets,” says van Abel. “So the assembly factories where you have a direct relationship are basically the ones that are doing pretty well, also because they have all these rules and things put upon them by big manufacturers. Companies are most vulnerable on the ODMs.

“So the further you go into the supply chain where they’re really making the plastics and the small metals and that kind of stuff the worse it gets. So we really want to also make sure that that is being surfaced and that we put some attention on it… Are we able to change that deep into the supply chain? It’s really difficult to get that far as a small player but we’re trying.”

“On the supply chain we’ve been going along investing into programs all along the way,” he goes on, giving the example of a child-labor free mining program it’s set up in Uganda to source fair trade gold.

“We’re working really hard with lots of partners on the ground. It’s getting off the ground now but the gold that we get from there is not connected to the supply chain of the [Fair]phone yet — so that will be an innovation that will come along the way, coming in 2020.

“What we do now is we’ve taken all the supply chains that we had for Fairphone 2 and were able to get that into Fairphone 3. So at least we have everything that we covered with Fairphone 2 but in a way that is also more scalable. Previously we had the gold through our own supply chain going into the factories. Right now we have it set up in such a way that other companies can use that same gold and the factory can scale up with that gold as well. So it’s a higher amount, it’s more scalable but we’re also setting up new initiatives.”

“Another one is cobalt which we’re investing in a lot — which is used for batteries,” he adds. “If we get that initiative up and running it’s also very interesting for the car industry to actually use that same supply chain. Because one of the things that a lot of the industry is focusing on is recycling. But we all know that there’s not enough to recycle to actually feed the supply chain with the amount of minerals we need to make our products. So we still need mining. And that’s one of the things that the industry has not been very open about.”

Virgin resources being necessary to manufacture shiny gadgets and electronics-packed machines is the industry’s dirty not-so-little secret. This means mines where minerals are dug out of the earth in order to be refined or smelted for use in the modules and components packed inside devices.

Even consumer tech giants that make claims for the labor and welfare standards of their third party assembly factory workers aren’t typically making promises that extend all the way back to the mines where the minerals essential to their devices are dug out and processed. Fairphone is at least trying to dig into the dirtiest stuff.

Conflict-free tungsten mine in Rwanda now integrated into Fairphone’s supply chain. Image credit: Fairphone

“We have an approach where we look at closed pipe supply chains for certain materials from the mines all the way to the component. And we look at the factories that are involved along the line per component because we can’t do all the factories — so we can at least say along that whole supply chain we’ve looked at the factories working it in,” says van Abel.

“If you look at mining there’s nothing beautiful about mining… Mining in itself is bad for the environment, there’s a lot of harsh working conditions, it’s in third world countries many of the times, so it’s not a focus area of a lot of these companies because it’s… a far away story. So many of these manufacturers and phone companies focus on recycling.

“In itself recycling is not bad it’s just that we still need all these virgin materials. Also recycling is kind of a last resort as I see it — reusing components would be a better thing. And even the best thing would be using the phone as long as possible.”

Repairable for half a decade+

Like its predecessor, the latest Fairphone’s flagship feature — aside from fairer and more ethical assembly — is that it’s designed to be repairable. A fact that’s front and center when you open the box and find a tiny screwdriver nestled alongside what otherwise looks a fairly standard (if slightly chunky) Android smartphone.

There’s no charger, USB cable or headphones in the box — intentional omissions to reduce unnecessary e-waste. The novel presence of a tiny metal and plastic screwdriver seems a fair trade for the usual accessories which Fairphone has calculated most phone buyers will already own. (If not, it can sell you a charger.)

Its big promise with this, its third generation handset, is that it will be supported for the next five to seven years.

van Abel tells TechCrunch he’s confident it can deliver on that “bold” pledge — having learnt some hard lessons over the past five+ years of pushing against ingrained industry habits baked into clockwork component upgrade cycles.

It wasn’t always like this. Some buyers of the first-gen Fairphone were disappointed and even angry when it announced it was ending support for that device in 2017 — meaning an early adopter would only have had between two and 3.5 years’ support for a smartphone that was sold as ‘repairable by design’.

The problem Fairphone found itself first crashing into, and next seeking to tackle head on, is that the consumer electronics industry as a whole is not geared up for sustainability and repairability but rather locked to regular (wasteful) upgrade cycles which in turn drive regular ~two-year component refresh cycles.

This tick-tock onward march of upgrades makes supporting older hardware a challenge. In seeking to go against the grain Fairphone has literally had to stockpile enough components to ensure it can offer years of spare part runway to support its devices.

In parallel, industry software has also needed to evolve so chipsets can be supported for longer — and van Abel says “a lot of software is actually changing. You can upgrade more and more easily to new software” — so it’s finally in a position to be confident that the latest handset can last.

“Our company has gotten much more mature,” he also says. “We are better equipped to deal with the scaling, the financial position has increased and has changed up to a point which is much more solid — so the whole support system, the ecosystem, around the phone has improved a lot.”

The Fairphone 3 is its second handset design to incorporate repairable modules that are designed to be accessible to the user. It comes in a translucent shell that also acts as a protective bumper and is stamped proudly down the side with the words “designed to open”.

Crack into it and you’ll find six modules that can be swapped out with a little bit of elbow grease and a Phillips #00 screwdriver — including the display, speaker and camera, as well as the battery (harking back to days when replaceable batteries were a smartphone norm).

Fairphone 3 — modularity refined

The aim of this type of modularity is not for customization or upgrades but for sustainability by increasing longevity by making it easy and cheaper to replace a damaged or defunct component vs junking the whole phone or having to take it to a specialist shop for expensive repair.

To be clear Fairphone is not offering upgradable hardware modules to boost phone performance over time but like for like replacements. It wants each Fairphone user to keep the same handset for longer — even if it gets dropped and the screen cracked, or used so much the battery loses its capacity to hold a charge.

“One of the biggest changes we’ve seen in the phone industry is that there’s small incremental innovation — which is in our benefit. So I think the time is right now,” says van Abel. “We are able to support phones longer. It has to do with the hardware, it also has to do with the software. The software you see that many of the software platforms… offer a better integration with the chipset. So also for future upgrades.

“You will see the software will run for longer time also on these chipsets — which basically are at a point where you will not run WhatsApp faster on a newer chipset. For some [other] stuff, especially on 3D gaming and the really high end computing stuff, it makes sense to go to the new processors but most of the stuff you will be able to do on the average processor on the phone. So it paves the way to keep phones in the hands of the consumers for a longer time, which makes sense. Because it’s cheaper for consumers… and it also is more sustainable.”

With the Fairphone 3 he says the company sought to dial down the “radical” modularity of its earlier crack at the concept — so the result is less of a ‘party trick’ smartphone design, as the Fairphone 2 was (he dubs it a “show off” phone) — and more, well, dull but worthy; modularity as a utility that’s there to enable (occasional) repairs.

“You don’t need the phone to be so super smooth in taking apart to be able to repair it,” he says. “Fairphone 2 goes beyond the idea of repairability. It’s more a show off phone in that sense. And that also comes with risks.”

Fairphone 2 — its earlier, flashier crack at modularity

Refining its approach to modularity also means Fairphone has been able to reduce the cost of the handset. Consumers will see that in a cheaper price-tag (€75 less than the prior model) — which puts it in reach of a bigger group of potential buyers.

The design is a cost (and risk) saver for Fairphone too in that it’s easier to manufacturer.  And cost and sales volume are important when you’re trying to demonstrate that making sustainable hardware can still turn a profile. (Not that Fairphone is there yet — but finding a path to profitability is a core part of the mission.)

For users the only slight downsize of the reconfigured modular design — which has a full 13 screws just holding the display module in place — is that getting to the guts involves more fiddling than it used to. Which again seems a fair trade given how rarely you should need to get into it.

“Fairphone 3 there’s less risk involved in manufacturing, the design is more sturdy so in that sense it’s also a phone we can scale with as a company — so the whole ecosystem around it; the quality control,” says van Abel. “We have a big team now in China which we didn’t have with Fairphone 2. So we are much more confident with this phone we can offer a very high qualitative product.”

If the aim of your social enterprise is to reduce e-waste and overall environmental impact by selling phones that are designed to last longer than rival devices there is something of a natural tension about releasing any new handset model at all.

When I put this to van Abel he agrees but points to the push and pull around the product, given the unavoidable need for Fairphone “to stay relevant” by appealing to smartphone buyers, and given the industry “not working int he way that we would like it to work”, as he puts it — i.e not being geared for longevity.

Fairphone definitely needs to be able to sell phones if it’s to make a positive dent in consumer electronics practices and processes. Which means enticing buyers is important.

And on that front its last model wasn’t an amazing success — saddled with uninspiring hardware at a fair trade premium price. (A pretty biting 2016 review by Wired called it “ethical but ugly”, complaining also that it had a slow camera and dated hardware.) Closing that ‘compromise gap’ is thus a key aim with Fairphone 3.

van Abel enthusiastically talks up the performance specs, noting particularly that they’ve put a lot of work into improving battery performance (the removable cell is 3000mAh, and includes fast charging) and on software engineering to integrate the camera — which he claims, as far as performance and photo quality goes, is “on par” with high end smartphones “that cost twice as much”.

At a glance the 5.7 inch full-HD screen also looks clear and crisp. Plus there’s a fingerprint reader on board, as well as NFC and 4G. Inside is a Qualcomm Snapdragon 632 engine, 4GB of RAM and a generous 64GB of storage (further expandable via an SD card slot). Dual SIM slots are another welcome touch.

The handset comes preloaded with a vanilla implementation of Android 9 (Pie). But as noted above buyers will be able to switch for a non-Google alternative — via an updater that will let them wipe and install the Android Open Source Project flavor of the OS. (The updater will come post-launch, according to van Abel, who notes that around 5% of Fairphone users opt to go full open source.)

Ethics aside, one straight up hardware boast the Fairphone 3’s got going for it is that it has a 3.5mm headphone jack. Which is something you won’t find on Apple’s latest iPhones. Nor on Samsung’s newest flagship. The march of tech progress has erased the accessory-friendly hole from premium devices.

So it’s a nice additional perk for Fairphone 3 buyers who’ve invested in wired headphones — meaning they can keep using other kit for longer too.

From fair trade chocolate to smartphones as a service

The smartphone industry has marched at a pretty steady clip since Fairphone 2 was released at the back end of 2015, with rivals updating their own much more expansive product portfolios at least annually. So an upgrade more than three years after the last Fairphone doesn’t seem overly wasteful or indulgent.

And while Fairphone has never pretended it’s going to be able to compete, like for like, with top tier smartphones on pure hardware specs and features it does need to be able to offer a phone that’s compelling enough to convince buyers to switch.

Good enough smartphone hardware with a guarantee of repairability and which is combined what it calls “fair specs” — i.e. a minimum wage for a workers in its supply chain plus a bonus that aims to close the gap with that and a living wage — is its sales pitch for Fairphone 3.

Who Fairphone buyers are is also expanding, according to van Abel. So while, two years ago, he talked of the typical user being a ‘Gen X German with a master’s degree’, now the target is any conscientious consumer.

Selling at least 100,000 handsets per year is the goal. To date it’s only sold ~175,000 Fairphones in total — through pre-sales and organic growth — but it reckons the new device will enable it to scale beyond that core fan-base to address a wider community of ethical consumers.

It’s being helped to that end by expanded carrier partnerships — such as one with Orange in France which will see the mobile operator range the handset in 600 stores.

Scaling sales is another necessary part of the social mission, says van Abel — as Fairphone needs to show its social impact investors that it’s growing demand and building a market for ethical alternatives.

When — or even whether — there will be a Fairphone 4 is a question he isn’t keen to engage with. Clearly the hope is Fairphone 3 packs enough smartphone punch to go the distance. Though he hints it might look to offer additional smartphones in order to enter the US, a major market it’s so far not addressed at all.

While Fairphone has had a singular device focus to date, van Abel says it’s thinking about applying its hard won learnings around electronics supply chains to other types of consumer devices — suggesting ‘Fair’ could end up as a brand prefix atop an assortment of consumer gadgets.

“I think Fairphone has developed itself — even though it’s called Fairphone — into a brand that I’m pretty sure can go into a full blown, sustainable, consumer electronics brand. Because there are none,” he tells TechCrunch. “There are not so many brands in the industry that can differentiate on what they stand for. Apple does pretty well on design. But for the rest I don’t know a lot of premium brands that can differentiate on something that they’re really good at. And we’re good at creating social innovation and sustainability. And a lot of the supply chains that we’re using already can be used for other products as well.”

More broadly, the business is evolving to sell sustainably-minded process change back to the electronics industry itself — which of course needs to reform wholesale in order to enact the kind of root and branch change needed to support a fully circular economy.

In practice this means the ethical supply chains it establishes are intended to be open for others in the industry to use too. So Fairphone’s business of making ‘fairer’ handsets also functions as a showcase and case study to encourage wider industry reform — including via some direct partnerships that allow its own tiny orders for key minerals to be fulfilled by it piggybacking and scaling the order with the help of larger buyers.

Of course everything in electronics is connected. So real change isn’t going to happen overnight. Which makes being committed to stick at it and drive consumer awareness essential. It’s a long game. Even ethical chocolate took its sweet time to take over the market.

“With Fairphone 1 we had our own supply chains, with Fairphone 2 we were more and more exploring incorporating into scalable solutions for other parties as well, and with Fairphone 3 we already have consortia — for example the cobalt we’re doing together with Royal Philips and Signify… and some other big brands I can’t mention,” van Abel tells us. “Systemic change only happens when the whole system changes — so we can’t do that as a small company ourselves.”

He says the key shift the consumer electronics industry must make to pull off transformative reform to a circular economy that’s better for humans and better for the environment is to change its business model — a centuries old model that’s still obsessed with pushing “as much as possible into the hands of consumers at the fastest rate possible”.

On this front he believes services business models offer exciting potential to retune incentives for consumers and businesses to flip the conventional model on its head.

Fairphone is currently experimenting with a service based smartphone offering — working with a local insurance company on a trial to offer Fairphone as a service, where the phone is leased not owned.

“If you sell a phone every three to five years to a person you can also survive as a company. It’s not that you can’t survive. But — having said that — one of the things we are experimenting with is Fairphone as a service… And the beautiful aspect around running a product as a service is on the profit and loss of the company. When I sell you a phone you become a cost center right away as a customer, because all the after sales, everything around it basically is cost,” he says.

“If I sell you a service and a hardware product comes with it for you to be able to use… then I’m intrinsically motivated to have you use that phone as long as possible because every time I need to make a new phone it’s cost. Whereas every month I get my money from you as a customer and I can actually keep developing my service up to a point that it is more tailor made.”

While leasing has been very common in the smartphone industry on the mobile operator side, Fairphone is approaching it from a phone maker perspective — which van Abel reckons offers potential for disconnecting “as much as possible” the use of resources from the business model attached to smartphones.

‘Fairphone as a service’ is just a pilot for now, and he concedes the model would require a lot of money to be put on the table up front to cover the cost of use of the device for several years (further lengthening already lengthy repairable-oriented device cash cycles) — but recurring subscription payments at least sound like a model that could unlock the necessary up-front capital.

(van Abel also points to changes going on in the funding space — saying impact investing is now “hot”, and adding: “We’ve been pretty successful at finding the right impact investors to support our growth.”)

“I’m pretty hopeful because [humans have] been pretty successful at selling people stuff they don’t need so I’m pretty sure that we can also reverse that into marketing stories around products that last longer and people wanting products to last longer,” he says. “There’s a whole playground [with services]. Can you imagine that you start rewarding people if they actually keep their phone longer, if they have less parts broken… Now you reward a loyal customer with a new phone — what if you reward a customer that has their phone for a very long time with a lower subscription rate, for example. So there’s so much stuff to play with in that area. Not only by phone companies but also operators and everyone that is in connection with customers.”

Fairphone founder, Bas van Abel. Image credit: Fairphone

“My vision is really the disconnect from the use of resources and the business models. That is really the key problem that we’re still dealing with — if you look at sustainability,” he adds. “From a human rights perspective we’re dealing with multiple complex situations where politics, countries, wars, all these things are attached to these supply chains — which have nothing to do with consumer electronics specifically, it has to do with the human condition. So that’s even a bigger challenge — in terms of how do we create world peace basically?”

While no one would pretend there’s an easy answer for that, changing anything for the better means being willing to start somewhere.

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