Modu, a firm based out of Israel who is (was?) trying to build super small mobile phones that you could plug into larger shells that add more functionality, in other words they made a giant SIM card with a built in antenna, screen, and battery, has failed to garner enough interest in their company to go public. Now Dov Moran, founder of the Modu, has to fire more than half his staff of 130 people. I can’t help but say “I told you so” since the concept was flawed from the start. Hardware manufactures want to deliver the most functionality they can, in a device that’s as small as they can possibly make. Having interchangeable shells that give you features like a super high resolution camera, or QWERTY keyboard, or whatever, creates an industry where everyone is fighting for the lowest of margins.
The whole point of a SIM card was to make it so that people can shove a tiny little piece of plastic into a device and then magically receive connectivity. Apple was the first to use the new microSIM card format with their iPhone 4 and iPad, letting them use the space inside their hardware for larger batteries and better antennas. With Modu, you get a brick that gives you calls and texts, and you’re stuck with that brick … forever.
“We did not manage to persuade people that Modu has great potential, and that hurts a lot. It’s my failure.” said Moran, later adding: “This is not the end of Modu. We will try to raise money from other sources of capital. The company will continue to sell its products. I regret that raising money on the stock exchange is interpreted as an automatic exit. It saddens me that the approach on the Israeli capital market is that capital raising for high-tech companies should take place on other stock exchanges.”
How many Modu units have been sold exactly? The world may never know.
[Via: Globes]