Modu Introduces Tiny Phone with Interchangeable "Jackets"

Authored by Mark Hefflinger on February 7, 2008 - 9:28am.

Kfar-Saba, Israel - Modu, the developer of a small mobile phone that can be slipped into a wide variety of branded "jacket" enclosures, as well as other consumer electronics that connect to the Internet, on Thursday announced that it will launch its phone in October with wireless carriers in Italy, Russia and Israel. The basic Modu is similar in size and appearance to Apple's iPod nano, and with the interchangeable jackets the device is about the size of an average mobile phone.

The company said that Universal Music Group is exploring the development of a range of Modu jackets that will feature its artists, and provide access to preloaded content or music subscriptions.

Modu founder Dov Moran told the Associated Press he estimates that a Modu and two jackets will sell in a bundle for about $280, which could then be substantially subsidized with a two-year service contract.

Moran's previous venture, USB flash drive developer M-Systems, was acquired by SanDisk in 2006 for $1.6 billion.

The Modu is set to launch on Oct. 1 with Telecom Italia, OAA Vimpel in Russia, and Cellcom Israel.

Moran told AP that Modu has not yet had time to ink deals with U.S. carriers, but expects the device to launch here in 2009 at the earliest.