Lazard Capital Markets semiconductor analyst Daniel Amir has published a review of mobile phone technology start-up modu Ltd., the new venture from msystems founder Dov Moran, from which it emerges that Moran expects sales of its handset to reach 400,000 units in its first year of operation, 2009, which will translate into revenue of $100 million.
This is not the first time that Moran has given an exceptionally high figure for the company's projected sales. In the past, he frequently expressed his belief that the company would reach $1 billion sales within five years. What appeared to be inconceivable when the company was launched is on the verge of turning into reality. Modu will achieve the sales target mentioned by Amir in a less than a year, once it begins selling its handsets in February 2009 to three customers - Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL), Telecom Italia (NYSE:TI; Milan: TIT), and Russian telephony company Vimpelcom (NYSE: VIP). Modu intends to extend its reach in the second half of the year to other operators in Europe, the US, Asia, and South America.
Modu, which has developed a cellular handset that uses "Jackets" - specialized enclosures for electronic devices - to interface with other computing devices, will have an impact, should it be successful, on a number of mainstream handset producers such as Nokia Corp. (NYSE: NOK), LG Electronic Co Ltd. (KSX: 66570), Sony Ericsson, and Motorola Inc. (NYSE: MOT). Amir expects that the success of the company's model will also affect companies producing processors for the cellular industry such as Skyworks Solutions Inc. (Nasdaq: SWKS), Qualcomm Inc. (Nasdaq: QCOM), Texas Instruments Inc. (NYSE: TXN), and others.
Published by Globes [online], Israel business news - www.globes-online.com - on August 19, 2008
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