Could Modu Be the iPhone Killer?

There was little known about Dov Moran’s start up Modu when I covered it’s appearance at CES 2008 last month. At the time, speculations alluded to a mobile technology that allows users to transform electronics into mobile phones, or visa versa give mobile phone flexible capabilities of other consumer electronic devices. They weren’t that far off. Today, Modu unravels the mystery, by announcing its “Modular Cellphone” Jackets (the meaning is in the captured in the name), due to be released in October by mobile carriers in Israel, Italy and Russia. Modu will present its modular jackets at the GSMA Congress in Barcelona next week (Feb 11-14).

Could Modu be the iPhone killer?

The product looks revolutionary. The Modu Mobile is a tiny cellphone, 1.5-ounce, 2.8-inch-long, that can be inserted into multiple jackets that enhance its functionality. In other words, the modu has the basic functionality of a cell phone: antenna, cellular radio, contact list, text messaging capabilities and a battery. It is packed with a large memory stick (1 G), that carries over your personal data (contacts, photos, music and etc), onto other devices, using low priced “jackets” or “sleeves” such as car stereos, photo frames, car navigation systems, clocks, toasters, laptops, cameras and more.

Founder Dov Moran knows a thing or two about carrying data from one device to another - he was the founder of Israel’s M-Systems, the original maker of USB flash drives, that was later acquired by Sandisk (SNDK) for $1.6M. Moran invested $5M in Modu from his own capital, and was joined by Sandisk, that predicted $1 billion annual revenue in 2011. In the official press release, Dov Moran, said:

The mobile phone industry is ready for a revamp. There are hundreds of handset models on the market: the trouble is that as a consumer you can only have one at a time and you are usually tied to a long and expensive contract. modu is challenging that with a solution that offers freedom, boundless possibilities and the opportunity to change your phone without it costing a fortune.

In Modu’s own words:

Modu brings freedom and boundless possibilities to the world of personal communications. By creating an affordable, flexible, well-designed, undemanding communication experience, our innovative solutions benefit both end users and mobile operators. The company strives to become a global leader by enabling a new and exciting connected world. modu was established at the beginning of 2007 by Dov Moran - founder and CEO of msystems (NSDQ:FLSH), inventors and leaders of the USB flash drive market (DiskOnKey™), FlashDisk (DiskOnChip™).

A picture is worth a thousand words, here are some of Modu’s cellphone jackets (click to enlarge):

Modu’s teaser video as featured on its website:

How can you get one?

First you have to be patient, it will take a while before it reaches the US. However, Modu will initially be sold with two jackets for $200, which could be subsidized by the operators to make it cheaper or even free. Additional jackets could cost $50 or less.

Disclosure: None

Comments

[Jon T]

Mmmm.. we had how many iPod killers? About 50 or so?

I guess this is the first of a ridiculous number of assertions that someone has the iPhone killer.

Trouble is, the iPhone today is not the one they should be competing against. It's the ones arriving in stores in a few months...

[Tom B]

Ho-Hum: another week; another "iPhone Killer".

[WarrenBucket]

It will likely be YEARS rather than months before Modu or any other so-called iPhone "killer" hits the U.S. markets. Till then, AAPL will undoubtedly continue to improve and improvise.

[F. J. Taylor]

"iPhone killer"? I rather doubt it! I see no compelling reason to buy a device like this. With 1 GB, it is WAY underpowered and wouldn't even "carry over" a handful of my pics or music - and please help me with this - why should I trade one iPhone with most of the listed capabilities (and all I would want) in ONE slick, well-designed, and integrated device - which interfaces perfectly with my MacBook Pro - for a series of schlock-looking "jackets" which have to be plugged in and out...??? I think Mr. Moran should have quit with the flashdrive concept...

[Pah-leeze]

So my choices are:
1 - iPhone, with a fantastic user experience, with models from a company that consistantly proves it's ability to add memory and functionality to new models;
2 - an object with very little memory from an unproven small company that is somehow going to either a) get exclusive partnerships to integrate with companies who make every device I use every day or b) blow through craploads of R&D capital to create their own "jackets" (basically their very own devices) to compete with the existing specialized devices?

Heh.

I mean, if they get a proven product out there and the user experience is great, then, hey, I'll be all over it. I'm not going to hold my breath though.

[Pah-leeze]

Oh, and the interfaces on their phones...I guess they are prototypes, but they look to be ca. 2005 or so?

[dithers]

Hilarious!
The article talks as if Apple doesnt have tons of experience in
'carrying over' data from one device to another.

Er...Apple are the Masters at this!

Sorry, this sad little venture wont fly - too many pieces, no integrated software/hardware, already YEARS behind the iPhone.

The iPhone has ALREADY 'shaken up' the crappy cell phone industry....

And one lousy gig? Sorry - I just bought my new 16 gig iPhone....

"Please send in the next iPhone 'killer', Miss Moneypenny." (pulls lever to send Modu into bottomless pit)

[Nickg]

Folks just l-o-v-e their t-gadgets. Remember Handspring?

[F. J. Taylor]

Yes, I do - a great product in its day, that was compatible with both Mac and PC, and started to make an impact - so Palm bought it and killed it...

I quote from the Wikipedia article;

While the Handspring Visor is out of production and is now considered passé by today's PDA market, the durability of solid state electronics, along with the power and verstility of the Visor series hardware, has sustained a substantial community of fans who continue to use the Visor today. This longevity was assured when the Palm people decided to make their newer operating systems (Palm 4.x and 5.x) backward-compatible with the previous OS (Palm 3.x) which drives the Visor series. Therefore, most of the software that was written for the Visor will also run on the later Palm devices including the new Treos (and vice versa).
There is an immense landscape of software still available, a user community on Yahoo Groups, and a supply of Visor hardware to be had on Ebay. The most powerful feature on the Visor is its Springboard Expansion Slot for which a great many modules can still be purchased.

[JIM]

This thing ain't exactly 'simplicity itself'...

Yeah, I wanna play with a transformer or a gobot! Or maybe it's more like legos...

Are you nutz?

If it looks complex to most folks, it will never sell.

Go Apple, go iPhone!

[tessant]

i created a "i am getting a modu" group on my website...thats how pumped i am about this device...

growthportfolio.ning.c.../

-scott

[pabs]

'Modularity' in most areas of Product Design overpromises and underdelivers and Modu is the perfect example, This product will fail outright let alone fulfil this self serving sensationalist headline.

Todays mobile phone is advancing at breakneck speed to be fully featured, whereby, gps, cameras, music, movies, tv's, radio, recorders, browsers, email, text, sms, credit payment systems, keys, video recorders and projectors will be standard features on the most inexpensive handhelds. A fully featured computer with these and many other features we havent dreamed up yet fully integrated, seamlessly, in a solid state appliance the area of a playing card and only a few mm thick, amazing.

Modu, swimming against the tide is attempting the ultimate act of devolution, reverse darwinism if you like, taking the mobile broadband space and divining it into its messy componant parts while the rest of the market evolves into a fully integrated affordable singular soloution.

I certainly respect Dov Moran's prior accomplishments they are outstanding, but this Product soloution is the answer to a question nobody asked.

[killometer]

do any of you own an iPhone? I'm adding this comment using mine. its the biggest piece of crap I've ever owned. give me my trek back please. you want an iPhone killer? I'm the iPhone killer. I've been inspired to register the domain killometer.com where I will crush this hienous beast for all to see. April 1st. all you apple adorers uuggghhh. ohhh Internet! big deal. I've surfed the Internet on my last 8 phones starting like 5 years ago. ohhhh the iPhone does Internet. how about typing? how about fast Internet? how about copy paste? maybe save a file? nope. not on this turd bar.