The challenge for Synchronoss is that a huge portion of their revenue comes from Cingular/AT&T. They have some other deals in the works, but none that are close to that size and scope.
If you look at their stock history, it ran up a huge amount before the iPhone, then took another jump with the iPhone halo. The problem was - and I'm just guessing here - that lots of that second run-up was mostly pure halo.
Their CEO has tried to blame the drop on unlocked iPhones, but I think the problem is that they were fundamentally overvalued.
Your point about in-store iPhone activation is interesting. Still, my guess is that Apple wouldn't break the in-iTunes activation process - which is working so well. Instead (and this is a guess), they'll likely do an adjunct - perhaps a rebate or credit upon activation?
It'll also be interesting to see whether Rev 2 hardware is able to put up any real roadblocks to the unlockers.
All Comments
If you look at their stock history, it ran up a huge amount before the iPhone, then took another jump with the iPhone halo. The problem was - and I'm just guessing here - that lots of that second run-up was mostly pure halo.
Their CEO has tried to blame the drop on unlocked iPhones, but I think the problem is that they were fundamentally overvalued.
Your point about in-store iPhone activation is interesting. Still, my guess is that Apple wouldn't break the in-iTunes activation process - which is working so well. Instead (and this is a guess), they'll likely do an adjunct - perhaps a rebate or credit upon activation?
It'll also be interesting to see whether Rev 2 hardware is able to put up any real roadblocks to the unlockers.