Ireland-Based Alchemy
Reducing the environmental impact of electronic waste is a pressing global concern, and an Irish company with strong connections to Apple is determined to make a difference.
In recent years, e-waste has become a major problem among global economies. For instance, in 2022 alone, a massive 50 million tons of electronic waste was created worldwide from discarded devices.
In response to this growing issue and in its attempt to reduce its global footprint, Apple has taken several initiatives of its own. One of which is Daisy, an iPhone recycling robot. However, the tech giant still heavily relies on external companies, such as Alchemy, to further promote its sustainability goals.
According to The Next Web, Alchemy is a “circular technology company” whose process involves handling all aspects of a device’s trade-in cycle. In cases where a device, like an iPhone or MacBook is exchanged at an Apple Store, Alchemy then receives the item to recover, repair, and resell.
Alchemy’s Small Beginnings
Established in a small capacity, Alchemy has now expanded to include over 60 warehouses located in the United States, Europe, and Asia. Also, to adhere with Apple’s stringent procedures and regulations, sensitive data on all incoming devices is immediately removed and the firm is required to undergo an audit by Apple every 6 months.
Alchemy’s trade-in process deeply focuses on the potential to refurbish used devices. For example, an old iPhone that can no longer be refurbished will likely be transferred to Daisy the recycling robot, instead of a landfill.
Post wiping and refurbishment, Alchemy then puts its devices up for sale in two primary marketplaces: Loop Mobile and Callisto. While Loop Mobile is accessible via large retail outlets such as Amazon and Walmart, the latter utilizes additional secondhand retailers for sales.
Secondhand Market Impact
Research conducted by Alchemy has revealed that Apple products have an impressive resale value. In fact, 15,000 iPhone 8 models are sold each day and, according to James Murdock, the CMO of Alchemy, the reason for the surge in used devices is due to a “flattened tech curve.”
“In the early 2000s the advances in technology between models was huge,” Murdoch stated. “When a new Nokia 95 or HTC device came out it left the old model obsolete. But now, the tech curve has flattened somewhat, leaving older phones with decent residual value. As you can imagine, this has been a gamechanger for the refurb market.”
Despite not gaining any direct financial benefit from secondhand market sales, Apple is a major beneficiary of the circular technology industry. Used Apple devices play an important role in the tech giant’s market share, allowing it to capture a greater portion of sales. It also brings a surge to other revenue streams, such as its Services division.
Going forward, as part of its commitment to sustainability, Apple is relying on third-party companies like Alchemy, but still asserting its own control to make sure its products have as little negative environmental impact as possible. For instance, the firm has plans in place for all of its iPhone battery cobalt to be sourced from recycled materials by 2025.
