I think they are including all the input resources (e.g. power for the machine that is capable of manufacturing the parts for the iPhone, power for the computers of the designers and engineers that designed it). It seems to be some sort of extrapolation of the Second Law of Thermodynamics, which states that the entropy of the universe is always increasing

Especially considering how power-hungry it is to mill/finish the phone chassis, plus the cost of cutting-edge lithography and low-yield wastage.