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There is no such thing as a small decision.

Every decision matters... Each day, businesses, governments, and enterprises all over the world make decisions that impact the world in ways that are too small to see – and too big to miss.

What do chemical feedstocks have to do with the color of your smartphone?

Nearly 16 million metric tons of plastic resins will be utilized by the electronics industry by 2017. Changing chemical feedstocks, regional chemical capacity adjustments and global shifts in demand for different types of downstream petrochemicals make the choice of a polycarbonate casing, a seemingly isolated materials decision, a very big and integrated decision for a smartphone manufacturer.

Energy – A key ingredient

Production costs of plastics are highly dependent upon the price of energy and energy-derived chemical feedstocks, as the combination can represent 75% of the cost of the end chemical product.

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Smarter and more cost-conscious

Smartphone industry decision makers need deep insight into the chemical industry and the chemicals value chain to optimize the assembly process. Using research on feedstocks enables manufacturers to better select the right materials to maximize profitability and reduce supply chain risk for each finished product.

Impact on electronics design

With the exception of market leaders like Samsung and Apple, smartphone manufacturers are forced to compete primarily on price versus features. With largely similar features across most devices, it comes down to their ability to design phones with cost-effective materials, like polycarbonate casings.

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Dale Ford, Vice President & Chief Analyst, IHS Technology

From global sales to product and capacity forecasting dynamics; from manufacturing strategies to future trends – Dale helps participants in the electronics value chain succeed.

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Investment risk for chemical producers

Suppliers of plastics, like polycarbonates, must align investments in capacity growth with global demand growth to achieve supply/demand balance, which has a direct impact on profitability.

Moving fabrication and assembly

With the dramatic increase in US-based petrochemical feedstocks, driven in part by the unconventional oil & gas revolution in North America, some smartphone manufacturers are moving fabrication and final assembly onshore.

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IHS Thought Leadership – Information & Expertise

Chemicals on the move

The next five years will see accelerated growth in the global supply of the three key base chemicals.
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Who Will Rule the Oil Market?

Find out how the answers to this question and more by reading the expert opinion of Dan Yergin on The Great Deflation of oil prices.
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