Modu has partnered a retailer store in Australia, Mobicity to sale the Modu device for 150$ and 50$ for the jackets.
This partnership  comes ofter the launch of Modu in 8 countries including Philippines, Brazil, India and more.
According to the Israeli newspaper Calcalist the company sales are increasing and it is estimated to hit millions of dollar.

But if you go back to the very start when Modu was everywhere on the 2008 MWC, throughout those days after the latest congress, Modu’s future is still unclear to say the least.
The Company started with a big promise and today it is selling a 2.5G device in developing countries, and as for the second generation, the CEO Dov Moran holds one device in his pocket, the reports says, but it was never shown to the public.
But there is more fundamental issue, the smartphone scene is blooming whereas feature phones are slowly going out of the picture.
That is the main problem of Modu from my point of view, the concept of one base device with the ability to change “identities”  is not working, not in a time when all mobile manufactures are building one device that does all.
I was very pleased to hear  that Modu is going to adopt Android as it OS, but as it seems Modu did not stand up to the peace.
Furthermore the world is not waiting for Modu, SK just announced a sim card that includes a OS, CPU and a gigabyte of flash storage is it sound familiar?
[youtube width="400" height="300"]http://www.youtube.com/watch?v=rrQz9xMeyRY&feature=player_embedded[/youtube]
Do not get me wrong Modu is not heading to the deadpool , they can still become the best low-end device out there, and some final words I still hope someone in Modu will wake up, i hope it is still not too late.

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• Modu To Adopt Android (talkingmobile.com)
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When Google was building its mobile operating system, I am sure it wanted that unfamiliar or small device manufacturers will adopt its OS.
Modu, the Israeli mobile device manufacturer, launched their first device with a closed simple OS. It was in part due to development resources and time constrains and of course because of the poor processing capabilities of the device that could not run heavier and more sophisticated OS. Frankly, from day one I did not understand why Modu is  investing resources to build an operating system, it is not its strength and there are good OS in the market that can be licensed just like the Android.
After struggling with launching the first device and getting rejected in developed countries Modu aimed to, Modu understood that they need to aim higher and introduce a better more modern device if they want a chance to hit deals with European and US operators. Because of the nature of the device, dramatic modification needed to be done but it is worth it. Modu will be using a versatile, more advanced OS with rapid development and constant updates and upgrades.
Secondly the eco-system that is being built alongside the OS (the application store) will contribute to the offer of Modu and will make it a more lucrative device than it could be if they decided to provide only J2ME application support.
Dov Moran told Techradar in an interview that an Android based jacket is being developed and that Modu2 “will be a touchscreen, a very unique concept, and will justify its label of being innovative. It will be a 3.5G product, but will also have a number of other features”.

Modu2 looked like a specially built device for the Android OS, therefore I bet that Modu will abandon its OS and will use the core of the Android operation system from now on until they have other options.
For dessert Modu mentioned that an Android based Netbook will also be released. Nokia watch out you are not alone anymore.

Calcalist, an Israeli financial newspaper, published that Modu’s employees were asked to deposit their Nokia phones and start using the new modu devices from the actual production line that is used for the launch.
After the many issues with the different operators, Modu will supposedly launch their device with several basic jackets this month in Israeli operator Cellcom.
Modu refused to comment an action which raises suspicion.
We are sure they are very cautious after the previous disappointments but it was said that Modu will do the advertisement for the launch and no TV or newspapers ads were seen yet.

[update 07.14.2009] We got information of “the launch” and here are the full details:

• Next week Modu will have their a closed launch party for Modu employees only.
• The launch will be a soft launch with no advertisement at all on either side Cellcom nor Modu.
• The devices will not be marketed and only a limited number of devices will be introduced as quite as they can do it.
• No information about the pricing of the device.

The information also published on TheMarker which also added that Modu signed a distribution agreement with a Philippine entity for approximately 38$ Million US.

Now that is the meaning of being cautious after you got burnt too many times. We wish them good luck and hope to get the first 3G touch devices they release.

Modu, the tiny 40.1 grams mobile device will hit the market in a month time, if there will be no more delays.
Today, Israeli newspaper published more information about Modu’s investors and that modu has approximately raised 85-95 million dollars with a recent post round 10 Million investment from a European investor.
But all of this pales to the next item: a new modu based on a touch screen is under development and in 8 months, the development will be over.

             The New Modu?(updated)

When the Modu was first announced it seemed that it will revolutionize the mobile market, or at less will create a new form factor of mobile device, rather than the standard ones.
The main concept was that the cheap modu device will be the heart of a simple phone and the jackets will turn it to a feature phone. Time went by, we learnt that the cheap device will not be so cheap, it will not have a 3G connectivity, and that operator after operator delayed or cancelled the launch of the device.
When most of the world is becoming more “smart” Modu will be the ultimate feature phone that can be changed from a music beast to a sms machine for just 25-100 dollars, the 2.5G chip can prove my point.
Now, It seems like they start to change their strategy. Now, that’s not what the guys at Modu think, touch screen is the next modu(le). So it is not so simple anymore.

That is all nice and modern but what will happen to the “old” modu, the device that will be sold in less than 30 days?
Who will buy  a device when a new model is waiting at the corner, moreover will the “old” jackets be supported by the new Modu?
The consumers (and us) will ask those questions before buying the device, we hope Modu thought about it as well and will have the answers.

Update: Engadget posted a picture of (as it seems) the new Modu device