Start a Phone Company

Summary: Mobile phones have captured the market so it has created one big industry now. Are you interested to know the basics of how a cell phone is made from the design process to packaging? We have a basic guide that also looks into the issues that face phone manufacturers nowadays.

Mobile phone technology has made communication easier and faster. Mobile phones are essential tools especially in business where the flow of communication should always be open so that transactions and processes are done in the most expedited way.

Due to its popularity, the communications industry has created Samsung, Sony Ericsson, LG, Motorola and Nokia, giants in the market.

To remain competitive, cell phone manufacturers face the challenge of keeping per unit manufacturing cost as low as possible (the rough average is $100/phone). This has led to outsourcing of production in developing countries where labour is cheaper. Another reason for the migration of cell phone production is the drive to be proximate to the intended market, one that is growing.

For one looking to start a phone manufacturing company, a major consideration would, therefore, be location. Does the region have people with the right qualification to become the manpower behind the company? Is the cost of labour such that a profitable operation is possible? Is the location at a distance from the intended market such that transportation costs do not eat profits? Is the market growing such that it can support your business?

The actual manufacturing will involve the assembly of the hardware and the installation of the software that will drive the phone. A manufacturer may design and develop both. Phone manufacture involves continuous research for new designs and the development of this design into new products with better appearance and functionality. The design process goes through several milestones and approval stages. R & D is a race among competing manufacturers. Alternatively, a manufacturer may hire a contract manufacturer or get the parts from suppliers and independent manufacturers.

During the actual production, all the parts like the LCD, keypad, antenna, battery, microphone, and circuit board go through a manufacturer’s assembly line where machines pick them up and put them together into cell phone units. Each phone then goes for rigorous testing to ensure that every part and feature – battery, video, keypad, messaging, calling -- functions well. Those that failed the quality tests are rejected. The units whose qualities have met standards are then packaged, shipped and delivered. Human intervention could come in the process of installing high-value components, visual inspection, and testing.

A manufacturer could receive orders from service providers for phones with customized software, design and features. This is in addition to the normal cell phone features like sending text messages and calling. These add-ons could be Internet connection capability, GPS, games, or recording.