In schizophrenia, people become psychotic (psychotic refers to having visual and auditory hallucinations, i.e. hearing voices or seeing people who aren't real). This does not cycle in and out, but is all of the time.
People with Bipolar Disorder have many different levels of illness, and only one of those levels experiences hallucinations. The other 3 levels do not. All levels of bipolar disorder experience emotions which runs from overly positive feelings (hypomania), where they feel terrific and believe they can do great things successfully. If the feelings increase to a level where they "hear" voices telling them they are wonderful, it's called mania, and is diagnosed as BP1. The feelings then peak and "cycle" into overly negative feelings (depression), where they feel very bad, and believe that they can do nothing well. People with BP2 spend 3/4 of their time in depression, with very brief bursts of hypomania, but never reach a level of "mania."
So that you know, most people with Bipolar Disorder or Schizophrenia can find remission of their mood symptoms if treated by a competent psychiatrist who can prescribe a regimen of medication that stablilizes the brain chemicals that cause all of these symptoms. Most people with schizophrenia and bipolar disorder live full and productive lives after a psychiatrist diagnoses them and helps them find the right medication regimen. Hope this explanation helps.