It looks like Apple’s controversial iPhone price cuts have turned the phone and portable media player into a hit:

• iPhone carrier AT&T said sales of the iPhone have increased since Apple announced the price cuts. “The price cuts are going to help us,” said AT&T’s Ralph de la Vega. “We see a very significant uptake in that business, and we think it will continue through the holidays.”
• Palm may post a lost because Treo sales are declining. Treo advertisements failed to fend off competition from Apple’s iPhone and the latest models of Research In Motion’s BlackBerry. Palm’s operating expenses, including the ads and research budget, climbed 25 percent in the quarter.
• Apple has prepared plans to nearly double its iPhone production in the fourth quarter. The plan calls for making 2.7 million iPhones next quarter, up from the 1.54 million originally targeted. Apple’s plans now call for 4.8 million iPhones to be produced this year, up from the 3.6 million previously targeted.

The popularity of the iPhone is likely to lead to more phones offering support for music, video and audio podcasts and other Internet media.