Why Europe Lags Behind & How Cyculus is Leading the Change
In the US, 85% of pre-owned phones are processed using automation, while in Europe, that number is just 10-15%. But why does this gap exist, and how is Cyculus changing the landscape?
In a recent Apkudo podcast, our very own Fergal Donovan, CEO and co-founder of Cyculus, shares how Device Processing as a Service (DPaaS) is transforming the European mobile device market. With over 25 years of industry experience at companies like Motorola, Brightpoint, and PCS Wireless, Donovan explains how AI-driven automation and robotics are making device processing faster, more consistent, and more sustainable.
Why Europe is Behind in Automated Processing
Unlike the US, Europe has a fragmented business landscape, with 600+ businesses across 28 countries handling pre-owned device processing. This fragmentation has made automation adoption slow, leaving many businesses relying on manual grading and refurbishment, which is:
Inconsistent – Human grading leads to errors and disputes. Inefficient – Slower processing times increase costs. Limited – Smaller businesses struggle to access advanced automation technology.
To bridge this gap, Cyculus introduced DPaaS—a scalable, automation-powered solution that removes the need for businesses to invest in costly robotics while delivering high-precision testing and grading.
Why Cyculus Chose Apkudo for Automated Processing
To ensure the highest level of device grading accuracy, consistency, and efficiency, Cyculus partnered with Apkudo, leveraging their AI-powered processing technology, which offers:
Controlled testing environments for standardised device assessment. High-resolution imaging & AI-driven grading for precise cosmetic inspections. Automated functional testing to detect defects faster and more accurately than manual methods. Scalability, allowing businesses to process large volumes without human error.
By eliminating subjectivity and inefficiency, Cyculus delivers industry-leading processing speed, accuracy, and resale readiness—bringing European businesses up to global standards.
Sustainability at the Core of Cyculus’ Mission
Beyond efficiency, sustainability is a driving force behind Cyculus. Operating from a solar-powered facility, Cyculus integrates:
With upcoming European regulations enforcing stricter CE branding and USB-C adoption, sustainable automation will be critical for businesses wanting to stay ahead.
What’s Next for Cyculus?
To further establish trust, transparency, and quality in device processing, Cyculus is working towards key industry certifications, including:
ISO Standards Ecovadis Certification B Corp Potential Right-to-Repair Industry Memberships
With strong demand for DPaaS across sectors including insurance, operators, distributors, traders, and resellers, Cyculus is poised to reshape Europe’s secondary mobile market.
How Cyculus Ensure Every Device is Ready for Automated Testing
Before a device can enter the AI-driven processing system, it must undergo a rigorous preparation process to ensure accuracy, security, and efficiency. At Cyculus, powered by Apkudo’s cutting-edge automation, the Receiving Station is where every device is verified, cleaned, and prepared to ensure a smooth transition into automated testing and grading.
By systematically removing potential processing obstacles, verifying security credentials, and ensuring compliance with global standards, we eliminate errors, inconsistencies, and security risks before the device moves forward in our Device Processing as a Service (DPaaS) model.
What Happens at the Receiving Station?
At Cyculus, every device undergoes a structured preparation process to ensure clean, verifiable, and automation-ready devices before testing.
1. Secure Data Deletion
🔹 Any remaining customer data is securely deleted from both the device and memory card, ensuring complete data privacy compliance. 🔹 Devices that fail data wipe verification are flagged for further inspection or secure disposal.
2. Screen Protector & Sticker Removal
🔹 All screen protectors and stickers are removed to prevent interference with AI-driven grading and testing. 🔹 This ensures the device accurately reflects its true cosmetic condition, avoiding false results.
3. Screen & Back Cover Inspection
🔹 Devices with broken screens or damaged back covers are flagged for manual processing and will not be entered into automated testing. 🔹 This prevents machine errors and ensures only structurally intact devices enter robotic grading.
🔹 Each device is checked against the GSMA global blacklist to detect: ✔️ Reported stolen devices ✔️ Devices with outstanding financial obligations 🔹 Any device failing GSMA verification is automatically quarantined from resale.
5. Apkudo Testing App Installation
🔹 The Apkudo Testing App is loaded onto the device to enable real-time diagnostics and ensure compatibility with automated functional tests. 🔹 This prepares the device for seamless integration into AI-powered processing.
6. Physical SIM Check & Removal
🔹 If a SIM card is found, it is removed and securely destroyed to ensure: ✔️ No residual customer data ✔️ No network conflicts during testing
7. Account Lock Checks – Apple ID, Google Account, & MDM Verification
🔹 The system runs a full account lock check, detecting: ✔️ Apple ID locks (iCloud Activation Lock) ✔️ Google Account locks (FRP – Factory Reset Protection) ✔️ MDM (Mobile Device Management) restrictions 🔹 Locked devices are flagged for manual review, preventing resale issues.
Next Up: The Cleaning Cell
Once a device passes the Receiving Station, it moves to the Cleaning Cell, where Apkudo’s advanced dry ice technology removes dust, adhesives, and contaminants in seconds—preparing the device for precise AI-driven grading.
🚀 Stay tuned for the next article in our series—coming soon!
Revolutionising the Secondary Mobile Market with AI, Robotics & Automation
The secondary device market is evolving rapidly, and traditional manual processing methods are no longer enough to keep up with demand. As businesses scale, they need faster, more precise, and more efficient solutions—this is where automation and AI-driven robotics come in.
At Cyculus, we have partnered with Apkudo, the industry leader in device automation technology, to transform the way secondary market devices are processed. Through Apkudo’s cutting-edge robotic Full Automation (RFA) system, we ensure that every device is tested, graded, and processed with unmatched accuracy and speed.
This article series will take you behind the scenes of our state-of-the-art facility in Stuttgart, Germany, showing how our fully automated processing line is setting new standards for efficiency, sustainability, and scalability in the circular economy.
What’s in This Series?
In this exclusive multi-part series, we’ll break down every stage of the Apkudo-powered processing system at Cyculus, explaining how our automated workflow is making device processing:
✔️ Faster – High-speed scanning, AI-powered grading, and robotic testing eliminate manual bottlenecks. ✔️ More Accurate – AI-driven defect detection ensures grading and functionality testing are precise and consistent. ✔️ More Sustainable – Automated sorting, testing, and cleaning extend device lifespans and reduce e-waste.
Each article will focus on a different processing cell, including:
🔹 The Receiving Station – Where every device is scanned, verified, and assigned a unique ID for full traceability. 🔹 The Cleaning Cell – Using Apkudo’s dry ice blasting technology to remove dirt and debris with zero chemical waste. 🔹 The Cosmetic Grading Cell – AI-powered image recognition and defect detection for objective grading. 🔹 The Display & Touchscreen Testing Cells – Detecting dead pixels, verifying screen accuracy, and ensuring multi-touch functionality. 🔹 The Camera & Audio Cells – Testing lenses, microphones, and speakers for peak performance. 🔹 The Data Clearing Cell – Securely wiping all user data to comply with data protection regulations. 🔹 The Packaging Cell – Preparing devices for resale with sustainable, eco-friendly packaging solutions.
From receiving to resale, our Device Processing as a Service (DPaaS) model—powered by Apkudo’s world-class automation technology—is eliminating inefficiencies, increasing device value, and making the circular economy more scalable than ever before.
Why This Matters
The old way of processing secondary devices—manual inspections, inconsistent grading, and labour-intensive handling—is outdated. Automation is the future.
At Cyculus, we are leveraging Apkudo’s robotic precision and AI-powered testing to offer businesses a faster, more transparent, and more efficient solution for processing their devices. This means:
✅ Fewer errors and inconsistencies ✅ Faster turnaround times ✅ Increased device value and resale potential ✅ A more sustainable and responsible circular economy
By integrating Apkudo’s automation into our workflow, we are pioneering a new era of device processing, ensuring that businesses can scale their operations while improving quality, efficiency, and sustainability.
Next Up: The Receiving Station
The journey of every device begins at our Prep Station, where it is scanned, verified, and sorted for processing. In our first article, we’ll explore how automation eliminates errors, speeds up processing, and ensures full traceability—right from the start.
We recently had the pleasure of welcoming Ben Wood, Chief Analyst at CCS Insight, to our state-of-the-art facility in Stuttgart, Germany. During his visit, Ben took an in-depth look at how Cyculus is transforming the circular electronics market through innovation, automation, and our unique approach to device processing as a service (DPaaS).
It was a fantastic opportunity to share our journey, showcase our cutting-edge technology, and discuss the future of device processing in the secondary market.
Watch the Video
Get an inside look at our Stuttgart facility, the technology powering our operations, and our conversation with Ben Wood.
🎥 Watch the full video here
The Origins of Cyculus
During the interview, our co-founder, Fergal Donovan, reflected on the origins of Cyculus and the problem we set out to solve.
“Having spent years working in device processing, it became clear that manual systems were holding the industry back,” Fergal explained. “Automation was the obvious solution, but the high costs and complexity of these machines made them inaccessible to most businesses. That’s when the idea of device processing as a service came to life—a way to make advanced processing technology available without the need for heavy upfront investment.”
Cyculus was founded on the belief that technology and innovation could unlock new opportunities in the secondary market, providing scalability, precision, and consistency for businesses across Europe.
What Makes Cyculus Different?
One of the key points highlighted during the interview was Cyculus’ commitment to independence and transparency.
“We wanted to ensure we were entirely independent—free from external pressures or interests. Our DPaaS model is unique in Europe. We handle devices efficiently and consistently, touching them only twice: once at the start and once at the end, when they’re ready for storage or shipment,” Fergal shared.
This streamlined approach ensures we deliver reliable, high-quality results while opening up the benefits of automation to businesses of all sizes.
The Power of Automation
At the heart of our facility is a state-of-the-art robotic processing system designed for unparalleled precision and efficiency. Ben was particularly impressed by the machine’s capabilities, which enable us to handle up to 300 devices per hour and scale to 100,000 units per month with multi-shift operations.
Fergal elaborated on the benefits of automation:
“Manual processing requires huge resources and often results in inconsistent outcomes. Automation not only addresses these challenges but also supports the growing focus on compliance and sustainability. By integrating AI and robotics, we ensure every device is graded and tested with accuracy, consistency, and speed.”
Looking to the Future
While we are currently focused on smartphones, our vision for the future extends far beyond.
1. Product Expansion
We plan to expand our capabilities to include tablets and smartwatches, supporting the growing demand for these devices in the secondary market.
2. Additional Services
From limited repairs to battery replacements and screen polishing, we aim to offer a full suite of value-added services that enhance device quality and extend lifecycles.
3. Geographic Growth
Our Stuttgart facility is just the beginning. As Fergal noted, “We want to be close to our customers, both for convenience and environmental reasons. While our focus is on delivering excellence here, we’re open to expanding into new regions in the future.”
A Shared Commitment to Sustainability
At Cyculus, sustainability is at the core of everything we do. By extending the life of electronic devices and reducing e-waste, we’re proud to support the circular economy.
As Ben summed up during his visit, “This is a huge step forward for the secondary market, and it’s exciting to see how Cyculus is driving change with innovation and commitment.”
Thank You, Ben!
We’d like to thank Ben Wood and CCS Insight for taking the time to visit us and explore how Cyculus is transforming the secondary device market. We’re excited to continue this journey and look forward to sharing more updates as we grow and evolve.
Stay tuned as we lead the charge in making circular electronics the standard for a more sustainable future.
Today, we celebrate Circular Electronics Day, a global initiative designed to highlight the transformative power of extending the life of our electronic devices. At Cyculus, we’re driven by the belief that sustainability and innovation go hand in hand. By embracing the principles of the circular economy, we’re redefining the lifecycle of electronics and reducing the global impact of e-waste.
Why Circular Electronics Matter
The world generates over 60 million metric tonnes of e-waste annually, and this number continues to grow. The circular economy offers a smarter, more sustainable way forward. Here’s why it matters:
Reduce E-Waste: Extending the lifespan of devices drastically cuts down on waste, diverting millions of devices from landfills each year.
Conserve Resources: By reusing and recycling electronics, we preserve valuable natural resources, reducing the need for destructive material extraction.
Protect the Environment: Proper e-waste management prevents harmful chemicals and materials from polluting ecosystems and impacting human health.
How You Can Contribute to Circular Electronics Day
Change begins with small, intentional actions. Here are five simple yet impactful ways to support the circular economy:
1. Refuse and Reuse
Ask yourself—do you really need that new device? Often, the device in your hand is more capable than you realise.
2. Care and Repair
Protect your electronics and choose repair over replacement whenever possible. A small fix can add years to your device’s life.
3. Buy Second-Hand
The thriving second-hand market offers high-quality electronics that are as good as new, at a fraction of the cost.
4. Choose Durable Products
Opt for devices designed for longevity, with repairability and sustainability in mind.
5. Recycle Responsibly
When it’s truly time to say goodbye to a device, ensure it’s recycled responsibly. Recovering materials like gold, copper, and lithium reduces the strain on natural resources.
Our Commitment at Cyculus
At Cyculus, we’re not just participants in this movement—we’re innovators. Our AI-driven, robotic grading technology extends the life of electronic devices, helping businesses and consumers alike embrace sustainable choices. We’re proving that technology isn’t just a tool for progress—it’s a tool for preservation.
By combining precision, efficiency, and the principles of the circular economy, we’re working to build a future where every device serves its purpose fully, leaving a lighter footprint on the planet.
Join Us in Driving Change
This Circular Electronics Day, let’s commit to a smarter, more sustainable way of living and working. Together, we can transform the way we use and reuse technology, ensuring that the devices we depend on today don’t harm the world we’ll need tomorrow.
Every choice matters. Every action counts. Let’s make a difference—together.
The mobile device secondary market is on the brink of transformative change. As we step into 2025, a new era of mobile phone grading and circular economy practices is emerging—one driven by compliance, automation, and advanced recycling technologies. At Cyculus, we believe that progress happens when we combine precision with purpose, and the future of mobile phone grading is no exception.
All Eyes on Compliance
By June 2025, the EU Eco-design and Energy Labelling Regulations will reshape the European mobile device market, with significant implications for the secondary market. These new rules will require both new and used devices to meet strict criteria on energy efficiency, repairability, and durability—pushing the industry toward greater transparency and accountability.
Key Compliance Requirements Include:
Energy Efficiency & Repairability: Devices must meet minimum energy efficiency standards and be evaluated on repairability and durability.
Longer Support Commitments: Spare parts and repair information must be available for 7 years after sales end.
Battery Lifespan Requirements: Batteries must retain 80% capacity after 800 charge cycles.
Durability Testing: Devices will need to withstand 45 accidental drops without functional impairment.
Mandatory Software Support: Devices must receive compatible software updates for at least 5 years.
Impact on the Secondary Market
These regulations will have far-reaching effects:
Longer First Life: Devices may stay in use longer, potentially reducing supply in the secondary market.
Supply Disruption: It’s estimated that 8 million devices worth over €2 billion could be removed from the secondary supply chain due to compliance shifts, such as the USB-C mandate.
Increased Quality Control: Stricter regulations may shift some trading towards unregulated markets where compliance is harder to enforce.
This shift is more than just a regulatory update—it’s a call for greater responsibility. The future demands not just compliance but a commitment to sustainable device lifecycle management.
The Rise of Automation in Mobile Device Grading
The next great leap in mobile phone grading will be robotic automation. At Cyculus, powered by Apkudo’s advanced technology, we’re leading the way in integrating AI-powered grading and robotic precision to redefine how devices are processed.
Why Automation Matters:
Accuracy Beyond Human Limits: AI-driven systems detect cosmetic imperfections and functionality issues with unmatched precision.
Consistency at Scale: Automated systems deliver the same standard of quality, regardless of volume—perfect for the expanding secondary market.
Speed and Efficiency: High-volume processing allows thousands of devices to be tested and graded per day, operating around the clock.
How Automation is Shaping the Secondary Market:
Enhanced Grading Standards: Consistent cosmetic and functional grading that eliminates human error.
Data-Driven Decisions: Grading powered by data analytics, helping determine if a device should be polished, repaired, or recycled.
Scalability and Cost Reduction: Streamlined processes mean faster turnaround and reduced operational costs.
Automation isn’t just the future—it’s the standard for scalability and sustainability in the secondary market.
Advanced Recycling Technologies Changing the Circular Economy
By 2025, e-waste management will undergo its most significant transformation yet, with urban mining and robotic recycling technologies set to redefine sustainability in the circular market.
Key Innovations in Recycling:
Urban Mining: New processes for extracting precious metals like gold, copper, and lithium from discarded devices, reducing dependency on traditional mining.
Robotic Recycling: AI-powered systems capable of identifying and extracting materials from over 500 waste categories with incredible precision.
Blockchain Integration: Blockchain technology will improve traceability and accountability throughout the recycling process, ensuring authenticity and secure data sharing.
Material Recovery Advancements: New techniques, such as hydrometallurgical processes, will allow the recovery of up to 90% of lithium-ion battery materials.
Why This Matters:
These advancements promote:
Less E-Waste: Recovering materials extends device lifespans and reduces landfill waste.
Circular Economy Expansion: Devices that can’t be reused can now be broken down and repurposed with higher efficiency.
Recycling is no longer just a sustainability practice—it’s a business advantage that aligns with consumer expectations and regulatory demands.
The Expanding Secondary Market and Trade-In Growth
The demand for second-hand smartphones is reaching new heights, driven by consumer behaviour, sustainability trends, and affordability.
Key Market Trends for 2025:
Continued Growth: The secondary market is expanding, with a 7% YoY growth projected for Q2 2025.
Premium Brands Dominate: Apple continues to lead with 62% of secondary market share, followed by Samsung in key regions like Europe and Latin America.
Rising Trade-In Ages: The average trade-in age has increased to 3.71 years, reflecting consumer desire to extend device lifecycles.
What’s Driving Trade-In Growth?
Affordability: A more affordable alternative to new devices.
Sustainability Awareness: Growing demand for circular economy solutions.
New Release Cycles: Expected releases, like the iPhone 16, may introduce newer models into the secondary market, driving trade-in volumes.
Trade-ins are no longer just an afterthought—they’re becoming a key driver in the circular economy.
The Road Ahead for Mobile Phone Grading in 2025
The secondary mobile market is evolving—fast. Compliance, automation, recycling, and trade-in trends are reshaping how devices are graded, resold, and repurposed.
At Cyculus, we believe that mobile phone grading must evolve alongside these changes. That’s why we’ve partnered with Apkudo to power our AI-driven, robotic grading technology—offering unmatched precision, consistency, and speed in a market that demands nothing less.
The future of mobile phone grading isn’t just about keeping pace—it’s about leading. Let’s build a more sustainable, efficient, and transparent circular economy together.
