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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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.

[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.

             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

from the Press Release:

This makes BPL Mobile the first mobile operator in India to offer the Real Internet as a genuine service from its WAP portal. The new, easy to navigate, service is offered through WAP portal of BPL Mobile, “@Cafe” and enables users to quickly access any website on any mobile device and enjoy a PC-like surfing experience.
“India is one of the world’s fastest growing mobile data markets. BPL Mobile has clearly focused its efforts on innovative leadership by introducing its subscribers to state of the art advanced mobile data services,” said Eran Wyler, CEO & Founder of InfoGin. “We are very excited to make our first entry to the Indian market,

This announcement comes after InfoGin and Microsoft deal, BPL mobile currently operates in Mumbai city with more than 1 million subscribers, that is surely a small carrier, but is a good start for Infogin in India.

Vringo Application To Be Promoted On Sony Ericsson’s Walkman devices

from the Press release:

Vringo’, the next-generation ringtone pioneer, announced today that its free video ringtone application is being pre-linked on global shipments of Sony Ericsson’s Walkman phones and promoted via the manufacturer’s Fun & Downloads portal.
… This partnership with Sony Ericsson, which was established when Vringo took home a prize at last year’s Sony Ericsson Content Awards, is the latest step in Vringo’s continuing push towards global availability and monetization of video ringtones.

Qualcomm To Power Modu Devices-Technologically And Financially

The chip manufacturer will empower Modu devices.
The company also invested in Modu but the amount has not been disclosed, rumors speak about 7 million dollars of investment.
We hope the release date will not be changed (April 09)

Almost a year later and the first modular phone’s future is unclear. Here are some developments that from our perspective show there are serious problems in Modu, problems that have a bad effect on one of the biggest promises of the Israeli and mobile market.

Layoffs- In just two week, the company fired in two cycles 100 workers, and some executives. That’s about 25% of the company working staff.
Do not get me wrong, layoffs in this time can also project managerial responsibility towards the problematic state in the markets. But it is a massive hit to a company that its first product should be out soon and just until recently was recruiting in a crazy pace.

Launch delays- When the Modu was officially announced the company said that the first devices would hit the market on October 1st, 2008, since then the date changed and it was assumed that we could buy the device on Q1 2009.
Today in an interview Dov Moran, the CEO and Co-founder, said that the device will only be available on April. This statement is actually to say that the launch date was delayed by 6 months.

Operators- At first, Modu announced that three operators will launch the device at the same time, Cellcom (Israel), TIM (Italy), and Vimpelcom (Russia). Time passed and after the first delay of the launch, it seems Cellcom will be the first to launch and TIM and Vimpelcom will come second (meaning they will wait).
This launch resembles what Apple aimed to when launching the first iPhone in the states, but in Apple’s case, that was their strategy and not a misfortune.
It seems that TIM and Vimpelcom are waiting to see if the launch in Israel is successful and will decide only afterwards if and how to deploy.

Advertisement of the launch- Modu sent a request to two major publicity agencies in Israel (with a global ownership) to send them a price quote on the Israeli launch campaign.
That is a bit strange, Cellcom will be the first to launch the device and it is expected that they will worry for the marketing side to their customers with ads and promotions. This step can be interpreted as a lack of commitment / security on Cellcom’s side.

All that being said, Dov Moran is an established business man with a brilliant record from M-Systems and with great connections. Modu still has a large sum of money in their bank and there are many skilled professionals still working in Modu. Bottom line, I hope that Modu Mobile will pass these bumps on the road and leaves as a triumphant from these challenges.

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