OWC (Other World Computing) has announced a $500 price reduction and expanded options on the Axiotron Modbook, what they call “the world’s only Mac-based tablet computer that lets users draw and write directly on the screen.”

Custom configured 13.3″ Modbook tablets now start from $1,599 with a standard Intel Core 2 Duo 2.13GHz processor, 2GB of memory, 160GB internal hard drive, an 8X Dual-Layer SuperDrive, Airport Extreme 802.11b/g/n wireless, Bluetooth, and Mac OS 10.6.x “Snow Leopard” installed. Exclusively for OWC customers, a built in WAAS enabled GPS is also included for no additional cost. Customers may also custom configure their Modbook with up to 6GB of memory, Solid State Drives (SSD) up to 256GB, and hard disk drives for up 1.28TB (1280GB) of total internal storage capacity and have it shipped within 48 hours.

Owners of an existing Apple MacBook 13″ (with FireWire 400) can choose Modservice and have their MacBook converted by OWC into a fully featured Modbook for $649.99 – now 40% less than the previous conversion price.

Both new Modbook and Modservice conversion offerings are backed by a 90 Day Axiotron Hardware limited warranty, which can be optionally extended to up to a Three-Year OWC Warranty starting from $129.00.

You can learn more about there service here.