updated 12:40 am EDT, Thu June 12, 2008
Synchronoss loses business
With the release of the 3G iPhone, Apple has clarified that all units must be activated at the store for them to be sold, taking away nearly a quarter of Synchronoss' business – the company responsible for home iTunes-based iPhone activations. Silicon Alley Insider writes that as the company confirmed the loss of Apple's business in a filing to the SEC, its stock tipped, falling almost 19-percent, as the news lines up with financial expectations given in its first quarter.
"Synchronoss will not participate in the on-site, retail store activations associated with the 3G iPhone, which was already taken into consideration when we provided our revised financial outlook on our first quarter 2008 financial results conference call," wrote Synchronoss in its SEC filing.
Synchronoss' stock took a beating shortly after announcing its Q2 financial outlook, dropping almost 44-percent in after-hours trading, since it was aware of the shift in Apple's activation strategy. The company was bound by a non-disclosure agreement, and was unable to specify why its numbers had been so modest.
In total, Synchronoss has lost 78-percent of its market value since hitting its 52 week high in fall 2007.