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News
Synchronoss Takes Hit Despite iPhone Deal
Wednesday, May 7th, 2008 at 4:00 PM - by Jeff Gamet
Synchronoss looks to be in a great position because it’s the company that manages the process of activating iPhones on AT&T’s network, but it recently lowered its sales and earnings forcasts, and says Apple’s combination iPod and smart phone is to blame.
"Our update for the first quarter and full year 2008 is mixed," CEO Stephen G. Waldis said. "We have materially lowered our growth expectations for 2008 due in large part to reduced revenues associated with the iPhone, which masks the underlying growth and momentum of the rest of our business."
Despite the iPhone’s popularity, Synchronoss revenue is down, and there are two likely culprits: Either more people than previously thought have been unlocking their iPhone for use outside of AT&T’s network, or, as Endpoint Technologies Associates president Roger Kay told Forbes, Apple may preparing to change its authentication system with the launch of the next generation iPhone.
Rumors are placing the new iPhone launch at the end of June with the roll out of iPhone Software 2.0 and the launch of the App Store, Apple’s distribution system for third-party iPhone and iPod touch applications.
If Apple is planning on switching out the technology behind the iPhone activation process, Synchronoss isn’t saying, but company is actively working on deals with other companies to help shore up its finances so that it doesn’t have to rely as much on checks from Cupertino.
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