New York (NY) - AT&T’s quarterly profits rose more than 20-percent thanks to healthy sales in wireless products and the Apple iPhone. The exclusive US carrier of iPhones saw first quarter profits rise from $2.85 billion from the same period last year to $3.46 billion this year.

The company said it gained 1.3 million net wireless subscribers for the quarter, the majority of which were new iPhone subscribers.

Apple too is gaining more ground, taking the number 2 spot in terms of market growth for smart phones and PDA type devices, just right behind RIM’s BlackBerry. According to analysts, Apple is set to release its next-generation 3G iPhone sometime in June of this year. Poised to be sold starting at $399, insiders say that Apple will begin production of the 3G iPhone sometime in May, which is fast approaching. See here for news on the new 3G iPhone’s manufacturing time frame.

Link: Reuters