US telecom giant AT&T reported a nearly 10 percent drop in quarterly net profit on Wednesday but beat expectations on a hefty increase in wireless revenue and improved performance by Apple's iPhone. Net profit fell 9.7 percent in the first quarter compared with the same quarter last year to 3.12 billion US dollars while revenue fell 0.6 percent to 30.6 billion US dollars, the company said in a statement. Earnings per share of 53 cents were better than the 48 cents per share expected by Wall Street analysts.