The present study examines Ethical Phone Inc.’s approach to producing environmentally sustainable smartphones. Operating within a niche market, the company’s business model is distinctive and remains largely underexplored within the wider smartphone industry. Given the absence of third-party verification and the evolving nature of its operations, the analysis relies primarily on company-generated data to assess the model. Addressing this gap, the study offers an original evaluation of Ethical Phone Inc.’s sustainable business practices, complemented by stakeholder perspectives. Using a case study methodology, the research draws on both primary and secondary sources, with particular emphasis on Ethical Phone Inc.’s Impact Reports. Data were compiled into a comprehensive dataset and analysed using NVivo, followed by manual refinement to identify key themes and theoretical insights. To strengthen validity, a focus group of seven experts, including company representatives, reverse logistics specialists, circular economy consultants, industry marketing professionals, and sustainability academics, critically assessed the firm’s strategies and their scalability. The findings indicate that Ethical Phone Inc.’s model aligns closely with Stakeholder Theory, the Triple Bottom Line, and Circular Economy principles. While the model demonstrates significant transformative potential for the smartphone industry, the study also identifies systemic barriers to wider adoption, including planned obsolescence, rapidly evolving consumer preferences, high ethical sourcing costs, and limited reverse logistics infrastructure. Ultimately, the study outlines pathways for broader industry adoption, including incremental modularity, collective sourcing mechanisms, supportive regulatory frameworks, and enhanced consumer engagement.