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iPhone Derivative Play

So you got your shinny iPhone - now you have to activate it. That’s where Stephen Waldis, the CEO of Syncronoss (SNCR) comes in.

His company is essentially the middle man between service providers, like AT&T, and the handset devices - in this case the iPhone. That relationship with the iPhone has helped the company rise over 200% in the last year. But could weekend's disruptions derail that success?

Waldis joins the guys for this conversation.

What happened this weekend with activation problems.

“We think the activation process with the iPhone is revolutionary,” replies Waldis. “Because instead of going into a store you can take this device….and activate instantly… If you look at the size of the orders this weekend ...the overwhelming number of users that came on (this week-end) activated instantly.”

What does your company do?

“We pull together or enable the customer experience,” says Waldis. “A user who is on iTunes hits a submit button and turns on that service on AT&T’s network.”

How long is your deal?

“We have a multi-year deal with AT&T to support this on behalf of the iPhone,” says Waldis.

Spotlight on Synchronoss

Is the deal global?

“We’ve had a long standing relationship with AT&T. The deal specifically supports the iPhone regardless of where you buy the device.”

He adds ”a lot of focus has been on the convergence of the network.. what is significant beyond the iPhone is the ability to activate smartphones.”

But do you have other contracts for things that are not Apple?

“You can bet a lot of the leading device manufacturers are excited about what we provide as a service,” says Waldis.

Are you a possible takeover target by either Apple or AT&T?

“I can’t speak on behalf of Apple or AT&T – but I can tell you we have carved out a pretty good niche.”

Who is your competition?

“Usually it’s internal communication service providers,” says Waldis. And there are one-off type programs on the device side and the communication service side. Syncronoss provides one common interface.

Dylan asks the guys what they think of this stock.

Eric Bolling, Guy Adami, Pete Najarian and Jeff Macke all say the stock is a buy.

iPhone Derrivative Play

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Trader disclosure: On July 2nd 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders
Macke Owns (DIS), Najarian Owns (CBH), (IMMR), (ZQK), (NOK); Bolling Owns (DIS), (T), Natural Gas, Corn; Vivendi Owns 20% Of NBC Universal, The Parent Company Of CNBC; CNBC Is A Service Of NBC Universal And Dow Jones