AT&T's (NYSE: T) second-quarter earnings modestly beat Wall Street estimates, thanks yet again to strong sales of the Apple iPhone, which also helped keep a record number of subscribers on board.

The nation's second-largest mobile carrier activated 2.4 million Apple (NASDAQ: AAPL) iPhones in the second quarter, up 29 percent from a year ago -- and a 31-percent spike from Q1. AT&T also said its churn rate, or the amount of subscribers who discontinue service, fell to a record-low 1 percent.

Across the board, AT&T's second quarter was better than estimates, but still slipped from a year ago. The company reported net income of $3.2 billion, or $0.54 a share, on revenue of $30.7 billion, while analysts were expecting earnings of $0.51 a share on revenue of $30.6 billion, according to Reuters Estimates.

However, compared to the same period a year ago, AT&T saw a decline from $30.9 billion in revenue and $3.77 billion or $0.63 per share in income.

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