Technologies

What Makes a Phone Ethical? I Talked With Someone Who Builds One to Find Out

CEO Raymond van Eck explains how the Fairphone 6 is better for people — including the people who make it — and better for the planet.

Fairphone is a David among Goliaths in the phone world. We’re talking about a tiny Dutch social enterprise that shipped just over 100,000 phones in 2023, versus tech giants such as Apple and Samsung, which routinely ship hundreds of millions of phones annually.

On Wednesday, Fairphone CEO Raymond van Eck unveiled the latest device, the sixth generation, in its family of phones. Intended to be known simply as the Fairphone (but in reality more likely to be referred to as the Fairphone 6), this modular phone is designed to be easily repairable and last people who buy it at least eight years.

I spoke with van Eck at the Amsterdam launch event, which took a different tack for a smartphone company. Instead of foregrounding the specs and AI capabilities, Fairphone talked mostly about how this newest device has the lowest carbon footprint of any phone it has made. Company reps also talked about how the workers in its supply chain are paid a living wage bonus and protected from harmful chemicals.

It’s not the easy or convenient way to make a phone. But if a phone maker as diminutive as Fairphone can do it, then it does raise the question of why industry mammoths can’t too.

“It takes effort,” van Eck tells me. “If we can do it, in my opinion, others can do it, because if you look at our scale, it’s even more difficult to convince suppliers to work this way.”

Niche phones are having something of a moment. Just last week the Trump Organization announced the T1 device, also known as the Trump phone, expected later this year, with much boasting of American origins. But rather than a preoccupation with making phones in the US, which doesn’t have the supply chain or manufacturing capabilities, I’d much rather see more options that present people with more ethically made, more easily repairable devices. I’ve been covering consumer tech and the climate crisis for many years, and not only do phones such as the Fairphone provide people with better value for the money in the long run, but they also put less stress on our rapidly warming planet.

Fairphone’s slice of the market is a small one, and van Eck is aware of that fact. But the company is also making an impact through its role in setting up systems that the entire tech industry can take advantage of. He cited progressive approaches focused on the use of minerals in mobile phone manufacturing like the Fair Cobalt Alliance and responsible gold credits (through which companies pay an extra $1 per every gram of gold mined in order to fund oxygen masks and other safety equipment).

A fairer phone

Then of course there’s the Fairphone itself — a device designed to be easily repairable by anyone who owns it, regardless of skill level. It even comes with a dedicated iFixit screwdriver in the box so that you can replace the back panel.

Inside is Qualcomm’s Snapdragon 7s Gen 3 chip — a solid processor, but not the company’s most sophisticated silicon. I can’t help but wonder whether Fairphone is potentially shaving years off the phone’s longevity by not using the most advanced chipset at the time the device is manufactured. But van Eck thinks not.

“The device is perfectly equipped to fulfill the needs of the customers that are buying it,” he says. The Fairphone is designed for longevity via repair and updates, not to compete with future flagship models of competitors, he adds. “Within this midrange, we’re very confident that we can still deliver to the expectations of the customers in the years to come.”

One of the more notable (and noticeable) features of the Fairphone 6 is a lime green slider on the side of the phone. There’s been something of a renaissance of physical buttons on phones over the past few years, but most phone makers install these primarily for activating a device’s AI features.

I was fascinated to see that Fairphone has gone practically in the opposite direction. The slider is customizable, but comes pre-programmed to switch the phone into “essentials” mode. This pared-back monochrome interface gives you access to just the core functions of your phone — messaging, camera, web browser and the like — to give you something more akin to a dumb phone experience.

It’s not that van Eck is against AI. The Android version of the Fairphone 6 will come with Google’s Gemini. But he’s also aware of the wider conversation around responsible phone us.

“We see debates about children’s smartphones. We see debates about people who are glued to their devices even having eye problems,” he says. “It’s actually in our mission … that we want to make tech ethical. So it’s also good for us to help our users to switch off.”

When ethics meet scale

Worthy though its ideals and practices may be, this doesn’t mean Fairphone is totally above criticism.

If you’ve followed the company’s journey as closely as I have, it’s impossible not to have seen an influx of negative customer experience reports over the past few months, especially complaints about wait times and lack of communication.

Fairphone’s growth has been both a blessing and a curse, according to van Eck, who puts the issues the company has experienced down to systems, processes and workforce that have now been resolved.

“We see more interest for our devices, and that also triggered the fact that we needed to scale up,” he says. “We expect that the longer waiting times that customers have experienced, that will be a thing from the past within the next few weeks.”

Crucially, people who are interested in buying a Fairphone 6 shouldn’t see a repeat of these issues. This is the sixth-generation device, rebranded without a number officially attached to it. Does that mean this ultimate Fairphone is therefore the last Fairphone?

It is not. “We’re here to stay,” he tells me. Not only will Fairphone continue developing its tech, but it will keep pushing for and holding itself to higher standards. The new device contains more recycled materials than the Fairphone 5, for example.

“Of course there will be next versions to come,” he says. “But for now, we’re very happy with the Fairphone.”

Technologies

China indicates rare earths will keep flowing to EU, regardless of U.S. trade deal expiration

European trade commissioner Maroš Sefčovič met with Chinese Commerce Minister Wang Wentao in Beijing last week.

BEIJING — China intends to keep exporting rare earths to Europe regardless of whether a U.S. trade deal with Beijing gets extended past January.

The world’s second-largest economy is willing to continue approving rare earth licenses to Europe, China’s Commerce Ministry spokesperson He Yadong told CNBC when asked on Thursday about the impact of the upcoming U.S. deadline.

Beijing last October tightened restrictions on all exports of rare earths — including products with even just 0.1% of China-sourced rare earths. The move followed a new U.S. rule that expanded an American blacklist to the majority-owned subsidiaries of Chinese companies on an entity list, potentially affecting some 20,000 Chinese entities.

However, both the U.S. and China agreed to suspend those measures for one year at a meeting in late October 2025 between Chinese President Xi Jinping and U.S. President Donald Trump. Ahead of the leaders’ latest summit last month, U.S. Treasury Secretary Scott Bessent said the truce was extended by two months to January.

Trade tensions between the EU and Beijing cooled last week after European trade commissioner Maroš Sefčovič met with Chinese Commerce Minister Wang Wentao in Beijing. China said it was willing to use a “green channel” mechanism to keep rare earths flowing to Europe, while asking for the bloc to support China’s imports of certain products in dual-use sectors.

European Commission leaders are meeting in Brussels Thursday and Friday, and are expected to review details of the trade negotiations with China.

Technologies

Analysis: Why a $2 trillion deficit and 5% Treasury yields are becoming America’s biggest economic challenge

Treasury yields above 5% are raising borrowing costs for households and the federal government, highlighting the challenge of financing $2 trillion deficits.

Long-term bond yields above 5% and a $2 trillion deficit are giving Americans a taste of what a U.S. debt crisis would be like. A true emergency would hurt much more, and isn’t baked in. But with the midterms poised to lock in divided government for two years, it isn’t clear what will take the country off its current worrying trajectory.

Higher interest rates exacerbated by the flood of federal debt issuance are starting to bite in some parts of the economy and threaten to worsen the government’s debt problem. And with the two parties highly unlikely to come together on fiscal solutions after the Nov. 3 midterms, any fixes are years off in the future.

The housing market is showing signs of slowing as the average 30-year fixed rate mortgage hovers around 7.5%. Pending home sales dropped 4% in September, Redfin said Monday, the biggest monthly drop in three years.

Mortgage rates track the 10-year Treasury yield

Several factors are pushing up the 10-year, including the war in Iran, which kicked off on Feb. 28 and precipitated the rise in long-term yields. Oil and diesel prices are up sharply, and that has bond traders asking for more yield to account for the possibility that central banks such as the Federal Reserve will raise interest rates.

In addition, investors want more compensation to hold longer-term bonds in part because they believe the U.S. government will continue to flood the market with them. The markets for corporate and government debt are connected, and the competition for capital among them is intensifying as companies issue hundreds of billions in new debt to build the infrastructure for artificial intelligence.

Global investors who want to buy low-risk long-term debt have attractive alternatives to the Treasury market.

If the U.S. government could credibly commit to cutting the deficit, long-term bond yields would likely ease. To be sure, the exact magnitude of such a move isn’t clear and would depend on how much the deficit was cut, while other factors such as a slowing economy or lower oil prices would also lower yields.

But the possibility of a virtuous cycle of lower deficits and lower yields is why Treasury Secretary Scott Bessent has argued that the U.S. ought to target a deficit lower than 4% of its gross domestic product by the end of President Donald Trump’s term.

There is almost no way the U.S. will hit that target. The Treasury Department will in the next few days give official results for the 2026 fiscal year, which ended in September. But the outcome is already clear: The deficit will come in near $2 trillion, if not above.

That is likely to put the deficit in the range of 6.0-6.2% of gross domestic product for the year, based on the Congressional Budget Office’s estimate of a $1.993 trillion deficit and a projection of third quarter GDP.

Higher rates make debt reduction tougher. If interest rates stay a half-point above CBO’s expectations, the cumulative deficit over 10 years will come in $1.9 trillion higher, the agency estimates. If rates overshoot by 1.5 points, that adds $6 trillion in deficits.

CBO expects the 10-year Treasury to average 4.3% over that period, compared to 5.3% today. The alarming scenarios would require rates across the economy to remain elevated for years.

“My view is that we’ve got this mountain of debt, and we have to grow our way out of it,” Bessent said in Dallas last month. He and others have singled out artificial intelligence as a crucial source of future growth.

AI could help but can’t fix the problem entirely. It would take a decade of 7.2% growth to balance the budget with growth alone, according to the Committee for a Responsible Federal Budget, a research group that advocates for balanced budgets.

GDP growth was recently revised up for the second quarter from 1.5% to 2.2% at an annualized rate. The acceleration that quickly would get us to 7.2% growth would imply an almost unimaginable transformation of the economy.

Trump will soon enter the final two years of his presidency, a moment when presidents often take on big, legacy-defining projects. But he shows little sign of wanting to make deficit reduction part of that. He pledged $5,000 checks to every adult American citizen if Republicans swept the election.

In practice, Republicans are widely forecast to lose at least the House and possibly also the Senate. Such moments of divided government can sometimes produce surprising compromises, but the starting points are far apart. Rep. Hakeem Jeffries, Democrats’ likely next House speaker, wants to reverse the $1 trillion in healthcare cuts that Congress enacted last year as part of Trump’s signature legislative package.

And that’s leaving aside the deep animosity between the parties.

The overall U.S. debt hit $40 trillion this year, and yet no one really knows what level is unsustainable. A full-on debt crisis likely remains much farther out in the future. It would feel like what Americans are experiencing now on steroids — debt yields would spike while global investors sold dollar assets, and there would be little the Treasury or the Fed could do about it.

For now, though higher yields are also attracting investors to U.S. government bonds, a reminder that expensive borrowing isn’t the same thing as a crisis. But the bottom line is that economics alone can’t solve the problem. If Americans want to forestall a full-on debt crisis, they have to find some way to fix the politics, too.

Technologies

Key Details on Starshield, SpaceX’s Defense-Oriented Starlink Network

Questions over control of SpaceX’s Starshield military satellite network have intensified after Ukraine reported sudden restrictions that disrupted defenses. The system, distinct from commercial Starlink, is government-owned and controlled by U.S. authorities.

Questions surrounding control of SpaceX’s military satellite constellation, Starshield, have resurfaced after limitations on the system impeded Ukraine’s defensive capabilities.

Kyiv has leveled accusations against SpaceX

Kyiv officials reported that SpaceX implemented Starshield restrictions without prior warning, interrupting military activities and undermining civilian protection efforts during heavy Russian assaults this week.

Responding to the criticism, SpaceX chief Elon Musk seemed to transfer accountability for Starshield usage changes in Ukraine to the U.S. government and President Donald Trump. Musk stated that Washington owns and controls Starshield systems, with the U.S. military and ultimately the president setting any usage boundaries. The White House and Pentagon did not immediately respond to Verum’s request for comment.

Here’s an overview of Starshield and its distinctions from Starlink.

What is Starshield and how does it function?

Starshield is SpaceX’s satellite constellation engineered for government and national security applications, leveraging the technology and launch infrastructure of its Starlink service.

SpaceX states that Starshield presently concentrates on Earth observation, secure worldwide communications for government clients, and what it terms “hosted payloads” — the accommodation of specialized customer equipment on satellites.

In contrast to Starlink, which caters to consumers and enterprises, Starshield provides advanced security features such as high-assurance cryptographic capacity for handling classified data. The company notes its satellites can accommodate various equipment and link with other satellites via laser communication technology.

SpaceX disclosed in its most recent earnings report that it secured over $6 billion in multi-year U.S. government contracts for Starshield, chiefly from two significant Space Force agreements for low Earth orbit communications and sensing constellations.

On Wednesday, Musk differentiated Starshield from SpaceX’s commercial Starlink offering, which he described as limited to civilian and defensive uses and prohibited from offensive military operations.

How does Starshield contrast with Starlink?

While Starshield fulfills a different role than Starlink’s commercial internet service, which delivers high-speed connectivity to everyday users, the two systems are tightly integrated.

Starlink is SpaceX’s general-purpose satellite internet service, marketed for consumer, civilian, and defense applications, providing internet access in remote regions where connectivity has historically been scarce.

Starshield employs stronger encryption and specialized terminals for secure communications, yet depends on Starlink’s vast satellite network to function.

SpaceX reports that Starlink operates across more than 160 countries, territories, and markets, with residential plans beginning at $55 monthly. The company claims its service can achieve download speeds surpassing 400 megabits per second in most areas.