The effect of unlocked iPhones on the wireless industry is perhaps wider than anyone could've guessed, with Synchronoss -- the company that handles AT&T's activations -- reporting that its growth expectations for 2008 have been visibly impacted by the gap between iPhones sold and iPhones activated. The problem stems from the fact that Synchronoss is paid only for iPhones that actually end up tied into AT&T, and since the unlocking phenomenon is pretty widespread within the iPhone community, the company's feeling the heat. Making matters worse, they've lost the premium they get for activating iPhones versus other AT&T devices in the first quarter, so all told, it's a gloom-and-doom report. Maybe they can make some of that cash back by... oh, selling unlocked iPhones. We're just trying to help out here.
[Via Silicon Alley Insider]