Profits increase at AT&T

■ AT&T reported a higher-than-expected quarterly profit yesterday, sending its stock up as much as four per cent, as a decline in iPhone sales reduced the amount of cash it had to pay Apple and boosted its margins. Apple shares fell almost two per cent after AT&T also said its numbers should improve further in coming quarters when it expects recent upgrade policy changes to temper smartphone sales further. Net income rose to $3.58bn from $3.4bn a year earlier.