Competitive Industry of Mobile Handsets in Philippines

Bucalbos, John Christopher                                                                         Competitive Strategy
De Jesus, Mike Ms. Nubla
Del Prado, Silas
Guitterez, KIm
Javier, Robert
Mapoy, Rey Ann

Basic Demand and Supply Conditions

  I. Supply Conditions
The Production Process of Cellphones
The process of manufacturing a cellphone is tedious and requires a lot of raw materials.   This process will be explained and broken down to 4 steps. The first step is the extraction of its raw materials. In general, the cellphone itself consists of 40 percent metals, 40 percent plastics and 20 percent ceramics and trace materials, according to the US Environmental protection agency or EPA’s article on the life cycle of a cellphone. The cellphone consists mainly of a circuit board, LCD and a battery. The materials will then be processed, which will be step two, Materials Processing.   The raw materials will be processed in order to make the parts of the cellphone. Crude oil is combined with natural gas and chemicals in a processing plant to make plastic, which is normally used to house the delicate circuit board and other internal parts of the phone.
The third step is Manufacturing, which involves putting together the processed materials together and coming up with a finished product. The plastics and fiberglass are used to make the basic shape of the circuit board while LCDs are manufactured by sandwiching liquid crystal between layers of glass and plastic. These materials individually go through these manufacturing processes and once they are done; they will be transported and are to be assembled and packaged. Step 4 is the packaging and transportation of these finished products. This requires the use of fossil fuels that will be fed to planes, trucks and other vehicles that would be used to transport them to their respective destinations, such as warehouses and retail stores.
The cost of manufacturing cellphones really depends on the model that is being...