AT&T's profits fell 23 percent with the recession causing customers to disconnect their home lines. The economy did not seem to have an affect on iPhone sales. The wireless portion of the business added 2.1 million new subscribers buoyed by the popularity of the iPhone 3G. The company activated 1.9 million iPhone 3Gs in the period, with about 40 percent of those customers new to the carrier.

AT&T loses money at the subsidized price of the iPhone 3G, but this is easily gained through increased income through more expenisve data plans.

via Bloomberg