Amazing Cell Phone Failures

DJMAC

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The tech world is for dreamers, schemers, and sometimes, scammers. This week Israeli mobile-phone firm Modu shut its doors and Gizmodo slammed the door on possible scam Peep Wireless, showing that for every great new phone that hits the market, there's a shady promise that never gets realized.
In my years in the mobile industry, I've seen plenty of ambitious phones bite the dust, or never rise from it in the first place. I've picked out six of my favorites here, including a company with "particulated media" and inflatable cars, a company where every rep appeared to be ex-Israeli Special Forces, and a company with a $225,000 phone.
That's not even counting some of the other great failures I've seen—the Gizmondo gaming firm with its embezzlements and crashed cars, Hop-On's vaporware screenless, disposable cell phones or the alleged pump-and-dump scam that was Pegasus Wireless. Click through to see some of the best failed cell phone firms, and please add your own stories to the comments.
A Blaze of Failure
Emblaze First Else
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The Claim: Emblaze is an Israeli mobile-phone firm that showed off a Linux-based cell phone with a radically new interface, backed by a super-hip Web site and marketing campaign.
The Character: Israeli mobile entrepreneurs are always entertaining. Emblaze had big personalities, threw flashy parties, and every rep I met had this special-forces look to him that made me feel he could break me in half.
The Outcome: Emblaze killed the project in June 2010 because "management was not able to confirm a deal on terms acceptable to Emblaze to proceed to the production of the device." They're trying to sell their software platform to other manufacturers.
Mod-U-Later
Modu
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The Claim: Modu produced a tiny "modular" phone that could be dressed in various "jackets" to give it new features. Planned jackets included one with stereo speakers, a digital picture frame, and a ruggedized jacket for kids.
The Character: Modu was much less insane than some of the other firms listed here. When I met with them they were enthusiastic and basically realistic; they just bit off more than they could chew.
The Story: Modu Mates Phones with Stereos, Picture Frames
The Outcome: Modu actually shipped phones in several countries, including Israel, El Salvador and the Philippines. But like many startup companies, their big dreams outstripped their resources, and Modu shut down this week.
 
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