AT&T sold 4.8 million smartphones in Q3 2010, almost half of which (2.1 million) were sales of Android and other smartphones besides the iPhone.
Sales of the iPhone were, indeed, down. The company activated 2.7 million iPhones in the third quarter, compared to 3.6 million in the quarter previous. Much of this can be attributed to expectations that the next-generation iPhone, the iPhone 4S, would launch this fall (which it did).
AT&T now has more than 100 million wireless subscribers, having added 2.1 million in the quarter. Sales were also strong in the computing device category, with wireless subscriptions on some 505,000 tablets, aircards, MiFi devices, tethering plans and other data-only devices, an almost 80% increase from the year previous. The bulk of these new subscriptions (290,000) came from tablets.
AT&T posted third-quarter earnings of $3.6 billion, or 61 cents per share, on revenue of $31.5 billion. Earnings were down $103 million (0.3%) from a year ago, but still in line with expectations.