Modbook Inc. is raising $1,000,000 with a minimum reservation of $5,000. Numbers displayed include non-binding reservations before investors are verified, signed, or closed.
We make the Mac OS X Tablet Apple won't - a pen-enabled, tablet/laptop convertible for a $1.9bn market of power+creative users hungry for the portable workstation-class performance no iPad can offer
Modbook CEO A. Haas last Manager of Newton Systems Group at Apple, the forerunner of the current iPhone and iPad productsFebruary, 1998
Begin Tablet Mac Development - Realizing that Apple would likely never offer a Tablet Mac, A Haas begins devising a way to create a solutionAugust, 2004
First Tablet Mac Prototype - Choosing the Apple laptop with the longest product life expectancy, A. Haas creates first Tablet Mac prototype.May, 2005
Induction as Technology Partner - A. Haas partners with Wacom to integrate their industry-leading pen technologies.August, 2006
1st. Gen. Modbook wins Best-of-Show - A Haas introduces the first 13-inch pen-enabled Mac tablet at the MacWorld Conference and Expo in SFJanuary, 2007
Apple Proprietary Solution Provider - Modbook project added to the PSP program, later transitioned to better suited Apple Premier DeveloperMay, 2007
15-inch Prototype wins Best-of-Show - A Haas and Steve Wozniak showcase first 15-inch Modbook at the MacWorld, winning another best-in-show.January, 2009
Modbook Inc. Established - A Haas establishes Modbook Inc. in Los Angeles, California, the center of the creative content producing industryFebruary, 2012
2nd. Gen. Modbook Launched - Launch of the Modbook Pro to help build & fine-tune business processes & infrastructure needed for the Pro XNovember, 2012
Modbook begins domination of page-one Google SERPs for “modbook” and “mac tablet”May, 2013
Pro X Kickstarter Closes Successfully - Modbook Pro X campaign raises $403,000+ in 40 days, entering Top 100 most successful KickstartersSeptember, 2014
Modbook Pro X R&D Revision - Project development undergoes major overhaul to expand support for more Apple 15-inch MacBook Pro base systemsMay, 2015
Modbook Pro X R&D Complete - Initial development work on the Modbook Pro X is complete, preparation for worldwide product launch beginsJune, 2016
Crowdfunder Reg D Fundraise passes $1 Million - accredited investors only fundraising indicates high interest from non-accredited investorsFebruary, 2017
Modbook Pro X Re-vamped - Product design re-vamp & incorporation of the new Apple Touch Bar is complete, ready to be put into pre-productionMarch, 2017
6TB Storage Expansion Option - Modbook Pro X receives massive internal PCIe SSD upgrade to 3x times capacity of top-end Apple MacBook ProJune, 2017
3rd. Gen. Modbook Announced - Modbook Pro X with Touch Bar officially introduced, shipping following successful closing of fundraisingSeptember, 2017
Warrant Coverage Perks - New investment perks for Crowdfunder.com investors, warrant coverage 1:1 for $10k+ and 2:1 for $20k+ investmentsOctober, 2017
Apple initially embraced my vision by signing me on as an Apple Proprietary Solution Provider and subsequently transitioning me into an Apple Premier Developer. Today I am proud to count Apple amongst my oldest customers purchasing my Modbook solutions.
Being a respectful Mac citizen and keeping our solutions 100% Mac Developer guidelines compliant not only earned us our accepted place in the Apple ecosystem, it also ensures that our Modbook tablet computers support all macOS applications right out of the box - if it works/runs on an Apple 15.4-inch Retina MacBook Pro before we transform it, then it will equally run on it after we transformed it into a Modbook Pro X.
We are to Apple like what Shelby was to Ford or AMG was to Mercedes in the car industry - an aftermarket, in our case Macintosh conversion, solution provider.
Since the introduction of the original Macintosh in 1984, companies (other than Apple) created legal macOS solutions either by producing Macintosh clones or manufacturing Macintosh conversions. The former requires a license from Apple, the latter require the purchases of 100% genuine Apple Mac computers which are then "converted" and sold as aftermarket solutions. Macintosh conversions are protected by laws in the US (First-sale doctrine) and most other countries that naturally allow the owner of a product, once acquired, to dispose of it whichever s/he sees fit.
Every Modbook tablet mac solution is essentially an enclosure conversion of a previously purchased 100% genuine Apple MacBook/Pro. Because the entire Mac computer (minus the original enclosure and a few other parts no longer needed) is retained within the converted solution, its Mac operating system also remains 100% compliant with its OS license agreement terms. Not only does this keep the entire solution top-to-bottom in a safe legal harbor, it is also the reason for the core Modbook rule for Mac compatibility: if it works/runs on the MacBook Pro before we transform it, then it will equally run on it after we transformed it into a Modbook.
Apple will not address our niche for the foreseeable future for the following two main reasons:
One(1) – It would be utterly incompatible with their product strategy (not marketing strategy, which could be much more easily adjusted).
Making a macOS X-based tablet would mean Apple would have to abandon their extremely successful and deeply ingrained platform strategy of splitting their mobile offerings into macOS-based notebooks vs. iOS-based iPhone/iPad tablets. Clearly separated through their distinct interface paradigms (mouse/trackpad on macOS and touch on iOS), Apple has carefully crafted their feature sets and positioning so as to complement and integrate with each other, and not overlap. This has arguably enabled Apple to become most if not the valuable company on the planet. However, it is also this strategy that creates the need for our products in the first place.
Two(2) – The niche is too small
Just in the last year, Apple generated an estimated $220bn in revenues from over 200m happy customers, whereas our niche represents only a fraction of 1% of their business, and not even that. It is a $1.9bn revenue potential only for us, but not for Apple. We sell transformed Apple base systems, and for every Modbook we sell, we also sell one MacBook for Apple. So Apple would only stand to gain just over half (~$963m) of that potential, hardly worth sacrificing Apple’s competitive advantage over the PC industry (vs. Windows/Android one-OS-fits-all model).
As such, it is highly unlikely that Apple will pursue this, or as Apple CEO’s Tim Cook says: “Apple feels strongly that customers are not looking for a converged Mac and iPad”.
Currently the protection of our market niche from potential competitors is centered around our unique approach to creating our products. Our Modbooks are, in essence, Macintosh conversion kits that transform genuine Apple MacBook Pro laptop computers into pen-enabled Mac tablets. This not only makes us unique (which is alway valuable) but also makes it exceedingly hard for traditional PC manufacturers to copy us.
Most every other PC manufacturer relies on mass production out of asia to build most, if not all, of their component parts in large batch numbers, filling their inventories to last months at a time.
Large inventories work fine, if you have a license to build the entire computer, top to bottom. Every single PC manufacturer today is using this business model, based either on a license from Microsoft (for making Windows PCs) or Google (making Android computers) or any of the UNIX/LINUX systems and their respective licensing models.
However, Apple does not license its Mac operating system. The only way to legally create a macOS based computer solution, is by way of producing a Macintosh conversions that will transform a genuine Apple computer into something else, in our case, a Mac pen-tablet computer.
Large inventories for conversion kits are a very (very) bad idea. The moment there is a change in the product for which the kit is designed, and we see Apple (like most every other PC manufacturer) update/change their products every 6-12 months, that inventory has just become obsolete and the associated capital expense is lost.
We spent a long time trying different approaches, product designs, and manufacturing process combinations, until we developed our very own, proprietary version of Just-In-Time manufacturing, with under 10 days in inventory for the current Modbook Pro, and an expected 6 days in inventory for the Modbook Pro X. Using a 100% US-based manufacturing and assembly line, we have worked out not only how to build one or a handful of conversion kits for one particular Apple computer, but do so for a line of Apple products and on a commercial production level scale.
This is what constitutes our key barrier to entry anyone looking to enter our market space and compete with us would have to overcome.
Of course, in the longer term, once we launched the Modbook Pro X and begin building out our product roadmap, we do plan on adding certain patentable processes and features to our products and build out our intellectual property portfolio.
Modbook’s products are sensibly priced to the same combined cost of the patched-together “almost” solutions they are designed replace. We are not making a VW Beetle for the mass market, we are building the equivalent of a Ford F-450 Super Duty Pickup Truck with the full SuperCrew cabin, V8 engine, and the extra long truck bed. That vehicle makes little sense for the vast majority of car buyers, but the professionals whose livelihood depends on it, couldn’t imagine making a business investment in anything else.
We created Modbook Inc because we believe that “almost” solutions should never be the only choice for any professional. Creative professionals need a tablet for more than standard office software and content consumption. For them, a pen is an essential part of their creative process. They need a tablet to act as a full-featured, professional desktop with workstation-level performance to run power hungry creative software applications. Their desire to combine pen capabilities of the iOS platform or a Windows-based pen tablet with the power, performance and portability of the macOS platform, force creative professionals to patch together an “almost” solution and force their workflows around it.
When creatives need pen capabilities and the power, performance, and portability of the macOS platform, Apple recommends purchasing a Mac for the creative pro apps and for the pen use, either an iPad or a third-party solution such as a windows based tablet, and using all of them in tandem. Such “almost” solutions leave creative professionals on their own to build, maintain, and troubleshoot the most critical links in their workflow.
For creative professionals, inefficient workarounds, forced upon them by their “almost” solutions, hinder their workflow performance, as well as their ability to effectively and efficiently work in the highly mobile environment their clients demand. Creatives are generally being paid by the deliverables they produce, not by the time they spend working on them. Any factor that streamlines their workflow will directly impact their profitability and livelihood.
We have set our year-over-year unit sales targets within proven performance benchmarks I have previously achieved. This will not only allow us to pace our growth at levels I have successfully managed before, but reaching our revenue milestones set conservatively will also clearly demonstrate the business potential of our market niche and more importantly, substantiate the even bigger market opportunity left un-captured. It is our strong believe that this will attract the attention of larger players looking to bolster their existing market share or expand into ancillary markets by acquiring our company.
We have designed this exit strategy and its metrics under the guidance of one of our advisors, who is also a senior advisor to the HP Mergers & Acquisitions Board. Accordingly we would expect to see such an anticipated acquisition to be priced at a multiple of our targeted revenues, which in turn would achieve for our investors a high ROI at several multiples of their initial investments.