An Israeli company with an innovative modular approach to smartphones is closing its doors. Modu could never get its unique modular phone system to take off, and has laid off most of its staff in preparation for shutting down for good next month. Unfortunately, employees are reporting that layoffs were made without earned compensation being distributed.
The Modu system had a tiny phone core that snapped into modules designed for different purposes. The company has shown modules that turn the little core unit into a handset with a full QWERTY keyboard, and another handset that is VoIP only. The innovation of the modular system was not sufficient to get sales ramped up to a feasible level.
I am a fan of modular systems using phones, but the Modu failing was in concentrating on a tiny core unit that wasn't powerful. This unit only plugs into different handset modules, which in effect simply turns it into different types of phones. Perhaps if they concentrated on creating modules that served different purposes they would have been more successful.