1. An alternating current is sent through a coil of wire attached to the base of a paper cone
2. The coil surrounds one pole of a permanent magnet and is surrounded by the other pole, so the current causes a force on the coil (which causes the cone to move)
3. When the current reverses, the force acts in the opposite direction, which causes the cone to move in the opposite direction too
4. Variations in the current make the cone vibrate, which makes the air around the cone vibrate and creates sound waves