Earlier quoted context omitted.
Lets say you buy one of these recycled phones that Apple has already deemed unfixable. Maybe it mostly works, but the screen occasionally blacks out or there's a bunch of dead pixels. Maybe the battery dies almost immediately. It's Apple's reputation that gets tarnished by this.
What a silly reason to ruin the environment! Apple (and to be fair most electronics companies) are already designing irreparable land-fill-ready devices. We have companies who are willing to do the hard work of repairing/refurbishing them to prolong their life-span, only to have Apple block them.
I don't think this company is necessarily selling working iPhones.