Apple certainly took a hit from the sales news. The iPod maker's shares fell $5.66 -- around 3.96 percent -- to $138.36 a share in afternoon trading.

    Generally, however, the Operator Formerly Known as Cingular (OFKAC) had another solid wireless quarter. The largest cellular operator in the U.S. added 1.45 million wireless subscribers in the quarter, up over 11 percent compared to the previous year.

    Wireless average user per revenue was also up, thanks in part to increased data revenues. Overall, average revenue per user (ARPU) improved by $1.42 for the quarter to $50.63, up 3.7 percent year-to-year. Data ARPU was up by $3.00 year-over-year to $8.77.

    "AT&T’s emphasis on building out its 3G HSDPA network is beginning to pay dividends as the company drives higher data ARPU, though it still has some ways to go before it catches up to competitor Sprint Nextel Corp. (NYSE: S - message board), currently the leader in driving data ARPU," notes TBR's Hyers.