I recently visited a new state-of-the-art facility in Germany set up by device processing and grading company Cyculus Services (see video below). It has invested in a robotic line that is powered by Apkudo, which offers machines that are extensively deployed in the US and, increasingly, Europe.
The primary goal of companies using this technology is to extend the life cycle of mobile devices, promoting reuse and reducing e-waste. This area has significant potential, with CCS Insight’s circular market research projecting that 61 million second-hand devices will be sold in Europe in 2025.
This is an emerging trend, with a similar machine offered by OptoFidelity. Other companies provide more-limited solutions that perform a specific set of automated tests or processes, such as diagnostics or data cleansing, in contrast to Cyculus’ end-to-end solution.
Cyculus’ primary focus is to offer what it calls Device Processing as a Service. This is designed to allow businesses such as network operators, distributors, insurers and retailers to access the automated processing line without the need for major capital investment.
An automated approach is attractive as it reduces the element of human subjectivity and variability when grading devices. In comparative tests, where a batch of phones has been assessed by humans and then by a machine, the automated solution offers a significantly more consistent assessment. This is reflected in the improved return rates of devices that are processed automatically, which is estimated to be about 1% to 2%, compared with between 5% and 10% for human-graded products.
It was interesting to watch the Apkudo technology conduct more than 50 different tests on the devices being processed. The tests include reviewing the physical condition of the device, identifying blemishes and scratches, as well as precision testing of components such as the display, touch screen, camera, connectors, buttons, speakers and microphones. At the end of the process, smartphones are data-cleansed, a protective film is added to the screen and the devices are bagged and tagged, ready for storage or shipment.
An added benefit of this end-to-end approach is speed and efficiency. The technology can process up to 300 devices per hour, so when running at full tilt, operational for 23 hours per day, it can get through an astonishing 100,000 devices per month. Furthermore, it can handle iOS and Android smartphones from multiple manufacturers, no matter what the model.
With an estimated 15% of the total volume of second-hand devices in Europe being processed in automated facilities, CCS Insight forecasts strong growth in this area. By comparison, in the US it’s estimated that up to 80% of devices are processed using some form of automation. We expect other connected devices such as tablets, smartwatches and laptops will also benefit from this approach in the future.
CCS Insight will be discussing strategies for industrializing and scaling circularity at its forthcoming invitation-only Circular Markets event in Paris, with partners including Apkudo, Cyculus, Dilpli and Telus Mobile Klinik. If you’d like more information, please contact us.
Watch my interview with Fergal Donovan, CEO and co-founder of Cyculus, below.