That’s right, Apple reported selling 3.7 million iPhones in 2007, but less than 2 million were activated. That leaves over 1.7 million iPhones which have probably been unlocked and are being used on networks other than AT&T.

Apple still makes a pretty penny on the sale of iPhones, but is missing out on an estimated $10 per customer per month payment from AT&T for these 1.7 million phones. That’s $200 million a year.

This news, along with some disappointment with product announcements at Macworld Expo have sent Apple’s stock tumbling 34% this year. Might soon be a good time to get some Apple stock on the cheap.