Modu unveils flexible phone with "jacket" range

"It's going to be important over the next few weeks to see how carriers react," said Luke, noting that carriers may quickly decide if they like the product at the Barcelona show.

He also said that the company executives had a good track record. For example, Moran founded msystems in 1989 and sold the flash memory company to SanDisk in 2006.

Modu said the phone, which is being manufactured by Foxconn (2038.HK), would include chips from Texas Instruments (TXN.N).

While carriers will set the price of the device, the company said it expects them to offer it free or very cheaply with a small selection of jackets.

Eventually Modu expects its jackets to go on sale everywhere from bookstores to airport shops, where travelers could pick up a jacket designed with in-built features such as restaurant guides for their destinations.

(Editing by Kim Coghill)