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The graph of daily activations is pretty amazing. Based on current growth rates, they should pass 1 million daily activations some time in 2012.
How are they tracking unique activations? IMEI numbers seems the most likely possibility to me, but I wouldn't think Google would keep a list of all the numbers on their servers.
IMEI most likely. They can transmit the number as a non-reversible hash (MD5 or similar), that way the number never gets sent or stored as plain text.