Synchronoss shares drop

Synchronoss, the company that makes the activation software inside the very popular iphones, has had a big hit on their stocks.

The company announced Tuesday that they had a low current-quarter forecast and had lower-than-expected results, that in part had to do with the decline of iphone activations that they had to do.

The reason for the drop, analysts say, is that more users are unlocking the iphone and using other phone providers, rather than use AT&T’s network. The company’s shares went down $9.86, to close at $13.04 on Wednesday after reporting low quarter results.

“The gap between the number of iPhones expected to be sold and the actual number that we are activating continues to be significant, and we expect this trend to continue,” said Synchronoss Chief Executive Stephen Waldis.

Synchronoss technologies gets paid everytime they activate a new iphone, if people are unlocking the phones at the comfort of their own homes, there will be no need for Synchronoss to be there.

Analysts said that Synchronoss’ Business with AT&T was about $21 million in the quarter, which represented 72% percent of its total revenue. Furthermore, According to Reuters, analysts were expecting earnings of 19 cents a share, before special items, on revenue of $35.2 million.

There are many places where you can get iphone activation software for a couple of dollars. If you search on google for “free iphone activation” you will get plenty of results that will to unlock your iphone so that it will be possible to be used with other Phone providers, such as T-mobile, or Sprint.