Yes, but it depends. The most hazardous materials in a phone are in the electronics, screen, and battery, so it depends on the size/amount of these rather than the overall size of the phone.
Packaging and weight are another factor in considering environmental impact. Smaller phones may be lighter and come in smaller packages, reducing manufacturing and shipping impacts on the environment.
The most environmental cell phone, however, is the most durable. If a phone lasts an additional 6 months or a year, the environmental savings from its longevity will trump any advantage from size, weight, or packaging.
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